Deal possibility thrown my way, not sure what to do

[Jared Roso]

Hello All, I've been reading on this site for a few months now trying to absorb as much info as I can and I've talked to a few people about wanting to get into real estate. I'd like to eventually get into buying, holding and renting, but not opposed to start by fix and flipping.

Onto the house that came my way, the other day my girlfriend mentioned that her dad has a house that he might be looking to get rid of. It's currently being rented out to other family and he offered it to them for $45K, they declined it. My girlfriend mentioned it to me and suggested we look into if that would be a good house for us to pick up. It apparently needs a new kitchen and some sprucing up outside. I've not yet had a chance to view the house in person to determine how much work would be required. It's a small house 760 sqft, 2 bed, 1 bath in St. Petersburg, FL. I know they aren't the most reliable but zillow and some other similar sites give a price estimate of $54K-$80K with a rental estimate of ~$870. I have no expectation that it will fall close to the high end but if I could get 65K-70K it would probably be worth it. I haven't had a chance to confirm those estimates yet by independent means. If anyone is familiar with the market in the area and could help with coming up with an accurate valuation it would be very much appreciated. I don't get the impression he is particularly motivated to sell but has had it awhile and is willing to unload it.

As for financing it I could probably borrow the cost from my parents to purchase and fix it up if I were to flip it, and could probably get a favorable interest rate, or offer them some of the profits, not sure the best way to structure that.

If I were to pursue the purchase, fix, rent plan I'd probably pursue a conventional mortgage. I have a good credit score 760+, but do currently have a mortgage on my current home. Working from the estimates zillow gives (again I know I should run my own numbers but not sure where to get all my own info yet) the monthly cost would be about $450 including loan, taxes and insurance, which with the estimated ~$870/mo rent would leave ~$420/mo in income. I don't know if with a few more renovations could potentially push the rent much higher in that area or not, again anyone who happens to be familiar with that market are would be especially helpful, but any advice is better than what I have now.

I'm sure there is much information I'm missing, but any guidance anyone could give on what questions to ask, what information to look for/at, or costs I may have overlooked would help me figure out whether to try to pursue it or not. Other information which may or may not be relevant: I live about an hour away from the home and don't have a ton of time to run down there to check on tenants if I were to go the rental route.