First Driving for Dollars Potential Deal

[Chris C.]

This is my first Driving For Dollars potential deal.

3/2 split level built in late 70's. Needs between 20-25k in rehab. Owner owes 71k but is willing to allow me to take over payments of $480mth. ARV is $112000 tops but I like to do a FARV (Fast After Repair Value) which would be $104k. I am primarily a flipper so these are actual numbers and not "wholesaler" numbers. In my area about a 74% rule applies for me.

I am open to keep as rental (about 12-15k in repairs/$800 mth rent), fix and flip, or other?

What would you do and why?

And before I start getting beat up about not being enough profit to fix and flip I know this. I would like experienced and inexperienced peoples input so that newbies can compare their responses and assumptions with experienced investors.