REO deal analysis help, newbie

[Shewit Tekeste]

Hello,

We are about to close on a REO sfh that needs total rehab in 70068 Area.

Property: built in 1953, SFH 3/2 1260sqft

Neighborhood: Class B,

Average comps ~ 120k within 5mile radius ( no homes sold in the same block) 

Rental income around $1000-1300

Cash buy for $35000

So far I have one GC that has quoted me about $55/sqft to completely gut the interior, roofing, plumping, electrical, flooring etc. This is way too high for us and makes our sweet deal become sour.

Any recommendations  on what we need to focus on for rental properties and/or referrals for contractors in the vicinity will be highly appreciated. We are going with the BRRRR strategy, and hope this will be our first of many homes if done correctly.

Thanks in advance for your time and responses.

PS: posted similar post in the landlord forum.