Unique Situation and Need Advice

[Matt Speer]

I'm looking to buy my first property and am looking at properties near college campuses, particularly ones that are expected to grow in enrollment. I looked at a property today in which the sellers are asking for approximately $85k. They realtor mentioned that they'd take $75k because no one will touch it because the neighbor had a serious fire and abandoned the home (and yes, it looks horrible).

This brings up a potential opportunity in my mind and wanted to see what everyone thinks. 

The damaged house needs about $50k to fix up but comps would assume it's renovation value at approx. $120k and the bank is asking for $50k (I assume I could get it for $35-40k cash).

Is it a crazy idea to buy both, and look to flip for a quick profit? My thought is that having both would raise the value of the $75k property to at least $85k and would profit at least $20k on the other property. 

Any advice at all from someone with experience would be amazing! 

Additional details: 

$85k home-- expected rental income between $1,000-$1,200 monthly with no repairs needed-- 3 bed 2 baths

Damaged property-- expected to bring $1,400-$1,600 rental income at full value-- 3 bed 2 baths 1,700 sq. ft.