Is it a deal??? House hack 2 yr, then rent and hold in Houston

[Robert Karvelsson]

The facts on the house in question:

Area I need to live in for next 2 years, so I would renovate, move in for 1-2 years, then rent 

2200sq ft - small for our family of six, need to add about 500sq ft which pushes reno $ up

$285K asking price (a friend's deceased mom's house has not gone on market)

1960's home needs $70K-$120K in reno depending on final plans (needs foundation work)

ARV $400K-$450K conservative, there are some 480K comps

Rental value around 3K very nice professional/young family area of Houston close to Med Center 

Values all over Houston seem down average 10-15% 

Think I could have the owner carry interest only until reno is complete, then refi out about 400K.

Anyone with experience that wants to weigh in with ideas and help me evaluate this deal would be excellent!

Thanks in advance for the input.