Interesting home for sale by owner

[Herlando Y.]

Details:

SQ Ft: 3700
Units 2:
Unit#1 - 4Bedroom, 3 Bath
Unit#2 - 1Bedroom, 1 Bath

Homeowner Asking Price: $300,000
Homeowner Rejected Price: $210,000
Rehab cost: $100,000
ARV: $280,000 (Only comps is 425,000, but the house is in a nicer area with more parking. Most houses hovering $200,000 to $259,000)
Redfin & Zillow value: $375,000 

Property tax: 9800
Potential Rent: 2000

I understand this deal look bad as is, but if I can't make money on this deal I like to know if I can help the homeowner somehow. Here is something about me:

I am a newbie lurking on bigger pockets for the past 3-4 months, but trying to break into the real estate market. I am trying to buy my first property when I drove by this house and found it interesting because it is so grand, but neglected. 

Tour the place and found that it needed serious rehab. Homeowner said he rented it to a drug addict and a college student and didn't get paid for one year. After he evicted his tenant a developer came and promise to buy his house and the house next door to turn it into a town home. The area right now is in the process of getting redeveloped, but the deal fell through. It has been almost 2 years since he collected any sort of income on this property. There are also major water damage and he is in the middle of repairing all the damages to the property. 

I do not believe this property will be able to rent well because it is so grand. Most people in the area do not make enough since it is a blue collar town. However, they are trying to redevelop it. If the town succeed in doing so, the property value can greatly increase. 

The homeowner is also running out of money and that is why he is desperate to sell. He has a $160,000 mortgage left on his house. He is unable to refinance it due to the condition of the house. The bones of the house is not bad, but almost every room needed some work. 

Is there a way to help him out and if I can make some money some how helping him, it will be great. I don't know if I am being newbie or stupid trying to help him out like this, but I does not hurt to ask. 

[Christopher Brainard]

@Herlando Y.

This is a terrible deal, even at $210k. After you make the repairs, you're going to have $35k in negative equity and this property will have a negative NOI, which doesn't even account for the mortgage. Property taxes alone are 40% of your gross rents! Additionally, if he only owes $160k and is desperate to sell, he would have accepted your offer of $210k, which was a more than generous offer. You can't help someone who doesn't want to be helped and you shouldn't help someone at your businesses own expense.

-Christopher