Help with analyzing my first HUD deal

[Joseph Sanchez]

Hello Everyone,
I really need some of your professional advice. There is a property I am looking at which is a SFH 3bdrm/2ba about 1750sq. This is a HUD owned property. The asking price is 87k. I have looked at some comps using zillow.com website. At least three sold property are in the 90-180 timeframe. The average price per square ft is $58.00. This property is in fairly good condition, needing all new appliances, new carpeting, a few interior doors, some sheetrock repairs and some minor landscaping. Otherwise, the home is solid. The ARV is about $100-110K. The estimated repairs is about $30k. This is the formula I am using. My offer to HUD will be 72K minus 30k (repairs)=$42k. Will this work? I am presuming that this is a non-performing asset since its been listed, relisted then reduced and now relisted again. How much time does it take before the property is consider a non-performing asset? I read in another blog that HUD would not except any thing less than 83% of the BPO. From what I understand about HUD homes, I must purchase the property cash or use a FHA or conventional mortgage. I don't have the cash and I don't have a buyer at this time. I am thinking that if I take out the mortgage myself and I lease/option it for a year to a close relative, then flip it for maybe $120k. I would appreciate any recommendations or advice on this deal or how I am analyzing this deal. Lastly, I believe this a non-performing