Virginia Possible Wholesale Deal!

[Kat A.]

Hi Guys!
Newbie to real estate investing here! I have a possible deal that I think I can get into contract!

Facts:
Owners want to get a chunk of change to pay off medical expenses.
I have worked with them in last 6 months so they trust me and like me.
They own a home in Vienna, Virginia free and clear!
The home is tenant occupied with the lease expiring in December! And its a 2 year Lease.

I know the kitchen needs major updating (as its the original from the home). But other than that, the owners have done maintenance on the property and updated the baths back two years ago.

Prices around the area are going $529-550K for their type of home. But there is new construction selling for $1.4mil down the Street. I know as a Realtor I would probably list it at $525K because of the kitchen and other repairs.

My exit strategy would be to:
1) Flip to a Landlord
2) Flip to a Rehabber

I am meeting with the owners in the next couple days and I was wondering if my wholesale price was off?

I am going to propose that I buy it for $450K and $500K max if they counter. But I am at a stand still running numbers over and over again...