Any way this can turn into an investment? Need some expert advice.

[Dave Meadows]

So I've been a little bummed of what I thought to be a peach of an investment property fell through this week. However, I know there will always be another, and appreciate what I've learned in the process. Lo and behold, a woman who "really needs to sell her house" contacted my wife via a mention from a friend. The property is a 3 bed/2ba on a dead-end street in a very convenient area. She says the house needs paint, flooring, an new deck, and possible mold remediation. I'm a construction guy, so I'm well aware there may be deal-breaking problems with this home, and until I inspect it myself, I'm not getting my hopes up.

However, what I've picked up from the REIA meetings I've attended and here on BP, this is how deals get made. A person has a desperate need to sell, they approached us as a potential solution to their problem, so how do we make this work? Here are the specs:

3bd/2ba 1792 sq ft.

2013 Tax value - $116,300

2012 Tax value - $132,000 (we had a big devaluation in TV county-wide between 2012-2013 that has not really affected market values)

She says she owes around $95,000, and I'm guessing ARV is around $125,000-$130,000

I realize there's not much equity, but currently looking for buy-and-hold properties. Rent would probably be around $1100/mo. Is this a situation where a "subject-to" scenario could work? I honestly don't see much potential with these numbers, but if there's not much out of my pocket, maybe there's something here. Thanks in advance for your insight.