Seller is begging me to do this deal & wants to owner finance

[Daric Carter]

Summary

The seller has 2 mortgages and owes 105k on a property that has been vacant for 2+ years. The house is in bad shape, needing around 35-45k in repairs. I am confident in the ARV being 160-165k. I know this isn't a fix and flip deal. I initially walked away from the deal, but realized that there might be a way to help the seller, using a wraparound mortgage. She is paying $1100/mo on a property she isn't living in. She is willing to sell it for what she owes.

Numbers on the deal

-95k 1st mortgage @3.875% ($890/mo) 

- her insurance is $2440/yr ($203/mo)

- I was quoted at $650/yr ($54/mo)

- her escrow shortage was $896, but if paid in full, her 1st mtg payment is $815/mo

-10k 2nd mortgage @14.9% ($217/mo)

-35-45k estimated repairs (I would do some work myself to get the cost down lower than 35k)

-ARV is around 160-165k

-Rent market ~ $1200/mo

My thoughts

If I paid off the 2nd mortgage (10k) and got a better insurance, the new mortgage would be around $613/mo. Do a wraparound mortgage that mirrored her current mortgage.  Get a tenant buyer paying $1200/mo w/5-10% down on $170k.  I feel like this is a good deal.

Thoughts?? What am I missing?

Thanks in advance, and apologies for the lengthy post.

-Daric-