Fixer Upper 1st time cash buy

[Louis Hamric]

Hi I'm new to Bigger pockets but I've been reading a ton and listening non stop to the podcasts. I am kind of excited about a prospect on my street. It's been sitting vacant before I moved I to my house and for who knows how long. It is a huge home 6 bed 3 bath, but has fallen into disrepair. It's not for sale but I checked the assessor and the lady who owns it has 19 other properties and is 85 years old. My thought is she is probably an investor like me and just never had the time tp get to rehabbing it. Or maybe she just is sitting waiting for someone to buy it due to the fast appreciation in my neighborhood. Who knows. Point is it seems like a good deal. The last time the property was sold was for 15000 in 1984. So I'm guessing if I offered 60k she would still make 8% a year on appreciation considering she hasn't done anything.

I already have another house I inherited that I rent for 1450 a month which is valued at 175000. I owe my brother 50k for his ownership in the house. So I planned on taking a line of credit out anyway. I was thinking if I took out the rest of the 70% line of credit that would give me 72.5k and then the rest could be taken out of my stocks I own. I am not quite there but I think I could wrangle up another 75 k for rehab. . I may not need that much. But I am just estimating. I dont know my ARV. But in this neighborhood my house is listing on zillow for 210k and is in good shape with a similar size and pool but less bedrooms. So I figured a 200k to 220 ARV would be realistic.

I know this is very speculative. But does this sound like a good deal and am I making good decisions ? Obviously my plan would be to rent it out for a at least 1500k.

My goal at that point would be to turn it into a sober living and put bunk beds in 5 rooms with 1 room dedicated to a pr