Seller is motivated; significant repairs needed

[Bariki Mallya]

Trying to get my first property purchased as an investment, but we recently passed on a property since we couldn't see how to make a profit. Need some advice if we make a good decision, or is there some way to make money on the deal we couldn't see.

1. ARV for property about 135-140k.

2. Owner motivated n losing money on property since he doesn't live there n is still paying mortgage.

3. Property in disrepair n needs about 20k in repair costs (by my non professional estimate-includes 25% addition for misc items I may have missed.

4. Seller firm at 115k asking price since that's about what he still own on the property.

5. Property should rent for ~$1100

Is there anything I could have done besides letting passing on this one?

Thanks

[Patrick L.]

If the seller is firm at the loan payoff then he's not truly motivated. He can keep losing money on the mortgage for 2 years or put some cash into the closing to get rid of his headache. The numbers are terrible for a rental and worse for a flip at his price. Make an offer you're comfortable with and see if he really is motivated.