Potential deal, could use a second (or 29 set of eyes on it)

[Jon Smorol]

I'm looking at a property that is owned by an out of state couple, it was a rental that has just been abused recently. Great neighborhood, easily the worst house on a nice street. Needs all new flooring, a easy layout change (knocking out a wall in a tiny 8x8 bed room to covert it into an office, and turning a large bonus room into the 3rd bedroom). 3 bed 2 bath with an ARV of 130,000. Estimate from the contractor isn't in yet, but should be able to get everything done for 10-12k.

Asking price $95,000

Reno 10-12,000

ARV $130,000. Should sell easily in this neighborhood.

Conventional Loan- 5% down, can do more but prefer least amt possible

If I offer around 80,000 I can be allin for 90-95k, roughly 70% ARV

Looks like a decent fix and flip, but I worry about tax implication, and it may be better to rent for one year til we can hit long term capital gains. Not sure on best tax strategy.

 Any advice?

Jon