[Calc Review] Help me analyze this deal -Any Help will be helpful

[Anthony Reddington]

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*This link comes directly from our calculators, based on information input by the member who posted.

This deal is on the MLS in my area. I know the seller through the local investment group. Nice guy always likes to talk and give advice to the new investors/ flippers. I would partner with a general contractor that I am currently doing a flip with, where he does the flip at cost. Then he will join in with 50% financial interest, also,into the property with me. I do not have the deep pockets to comfortably sustain this project throughout its entirety so partnering is huge as I build more capital. 

So the thought processed on this flip is, raise the ceiling to be conforming sq footage on the second floor to add 2-bedrooms and 1 bath adding another 900-1000 sq feet of finished space. Then on the first floor move the stairs so they are not in the middle of the house but off to the side. Make one side of the house a master suite. Add a half bathroom then have the living room, dining room, and kitchen is all open concept. This would get allow the house to sale based on the report attached. The location is great it is a unique street that actually has no street only alley ways to the homes and front of the houses is a large courtyard with sidewalk next to the local night scene.

The other way to do this flip, the house is in good shape could do bare minimums redo the bathroom and kitchen and simple cosmetics items. Then the house will would sell for 230-250kish in that range.

So my issue is with the purchase price, asking 179k. I know got it for the high end of the 140s. The seller has deep pockets and could carry this property for a long time. However, he just purchased huge lot of lands and focusing on that. My question would be: what would be the best angle to try to get him to reduce what he wants to make on it? What would be the best way to go about financing the project with little down as possible (he has talked a little about giving financing to me but I just don't see 170s as a viable option on this) ?

Am I crazy to try to do this project or ? I do not have a large circle of friends that flip or understand what I am trying to do/ build.  Thanks in advance.