Unique Townhouse Purchase situation

[Martha Blumel]

HI all! I have a unique situation that is a little outside of the bounds of our typical investing questions.

In the middle of me actively looking for a rental property, I found out that I'm going to be a grandma!! This was a surprise to my daughter, her boyfriend and the rest of the family! However, we are thrilled. 

I live in a townhouse development in West Palm Beach, FL. My daughter and I have lived here since 2000, so I am very familiar with the value, HOA etc. Since she grew up here, we are trying to find her a townhouse in the same development. A place that they can call their own. And a place close enough for grandma (Mimi) to help!

I went onto the property appraiser website and looked up all the NOO landlords in my development and sent them a handwritten (scanned) card, explaining that we were looking for a place to rent, rent-to-own or purchase for cash. I sent out about 100 cards and got back a pretty good response (over 12). Of those 12, two are willing to rent at the lower amount we are looking for and one of them asked me if I was interested in purchasing the townhouse cash and proceeded to tell me he didn't need the money! So... I have decided to present offers to both of them - Cash and Lease Option.

Since I obviously have emotion involved (big no-no), but unavoidable as a grandma! ;) I would love your feedback on my numbers.

The townhouses are your standard South Florida Quads (2br/2-1/2b, 1400sf). They are currently selling for up to $145k, average around $135k in the last 6 months.

Both of the units I am looking at to put offers on, are run down with little-to-no upgrades (built in 1985). Since I have lived here 17 years I am very familiar with the units and these are the numbers I came up with for rehab. I went middle of the road.

12000 - kitchen

4000 - 3 bathrooms

300 - Landscaping & patio

500 - Drywall repair

200 - Paint

15000 - Tile & carpet

3500 -AC & air handler

885 - Replace hurricane impact slider (that is cracked)

2000 - incidentals (outlets, covers, smoke detectors, baseboards, water damage, unexpected, etc.)

$38, 385 - Rehab Total

Average purchase price of recent sales = 

$135,000

  - 38,385  (repair costs)

   96,615 - Existing value

$75k - 80,000 cash offer within 3 weeks (using hard money @ 60% + ARV)

–OR–

$100,000 Lease Option (for 1 year)

$2500 Option Payment

$3550 (1st, last, security, pet deposit - same as rental lease + $25 credit)

$1175 months rent ($25 credit towards purchase)

x 12 months = 14,100 ($300 more than regular rent)

$100,000 (LO purchase price)

      2,500 (option payment)

         300 (rent credits)

$97,200 (to be paid by 3/1/18 at the latest)

Exit strategy is to either refinance myself or have my daughter refinance with FHA

What am I overlooking? Is there anything I need to incorporate into my numbers?

Are there any better options like refinancing with a 203k?

Of course this is not your typical investment, but important none-the-less.  

I appreciate any and all input! Thanks! =)