Almost finished with Flip, but considering Renting

[Matt Franklin]

I'm almost finished with a flip where I've put roughly $15k into. There is no current mortgage on the house because it is a family member's vacant home. They let me do the updates with my own money and only want $125k once it sells. They planned to gift the excess over $125k back to me. Comps in the area for this type of updated home are about $165-$170k. It's a brick ranch with basement, built in the late 1960's. I've added a third bedroom upstairs and there's a fourth "bonus" room in the basement that is truly a bedroom, but it doesn't have windows. So I can't market it as 4 BRs. It has 1.5 baths. So I'm almost finished with this and am now thinking I may want to keep it as rental property. Many people have driven by asking if I'd consider renting. Problem is a) I want to get my money invested from the flip back out in cash, b) The family owner needs the $125k from a sell. What are my options to keep as rental and still get my investment (cash out)? Yes, I could just buy it from them, but I'd like to get my investment plus some profit out of it. What bank is going to approve that when I have $15k in debt showing currently? Plus, they will require 10-20% down, which I don't have now either. Maybe I'm just stuck and will have to sell. But it'd be nice to get the best of both worlds for both parties. I get my profit, they get their $125k, I continue to earn money through rental income. For this type of house, I could rent it for $900-1000 and net about $300 per month. Any thoughts?