Buying My First House, Needs Major Repair

[Philip Smith]

New to Bigger Pockets and could use some advice. 

 I am 23 years old and have a stable job as an engineer.  I am looking to buy a house in the Federal Hill area of Balitmore, MD.  My plan is to live in the master bedroom and rent out the remaining bedrooms.  I found one that I am interested in but it needs major repairs.  The house is a bank owned foreclosure that is 2540sqft, a 3 bed, 2 bath and asking price is $230k.  From what I can tell it needs a new roof, 2 new bathrooms, new HVAC, some drywall work, possibly a new kitchen and paint throughout the house.  I am guessing that that will amount to somewhere around $60k.  The realtor I met with said he thought it would take $30k but I think that is low.  Anyone have any opinion on this?

The houses around this one are supposedly worth between $300k-$370k they are smaller (1800sqft) and appear to have been renovated.  Other houses of similar size (2500sqft.) are selling into the low $400k's.  

Do you all think that this option sounds like a good idea? By the 70% rule using $335k ARV * 0.7 = $234500 - $60,000 = $174,500. According to this the asking price is too high. For the math to work at the current asking price of $230k the ARV would have to be $414k which I think is ambitious for this house. Do you agree?

Another thing is the financing.  At the moment I have about $20,000 that I can use to make this deal happen.  My credit is good (about 760 retail credit score).  I was planning on putting 5% down.  I'm not sure how it will work since a portion of the loan would be the money that is needed to renovate the house.

Thank you all for your time and any advice you may have.