First real lead - numbers don't look good - can I do anything with this?

[Heather D.]

I just started my first marketing campaign this month. Used the yellow letter and sent it to a 60 - 90 days late list. A call came in yesterday from someone that that got the letter and just wants to have their loan paid off and get an extra $1,500 to move on. I'm looking at the house tomorrow afternoon but this is my FIRST one.... so I need some help.

The mortgage balance is 118K and the early sold comps show $144K (need more diligence to prove this)....and my early rental comps show $1,400/mo. AND the owner is behind 6 mos in payments. I expect at least 5K in repairs. At this point I only know that it needs carpet and paint. My contractor is going with me tomorrow to walk the property and identify all required repairs -- focusing on those need for a rental since I don't see any hope for a flip.

I've been planning to use the 70% of ARV less repairs.. and based on that formula this isn't even a mediocre deal.

Is there anything salvageable here? I really don't want to get into the owner finance game and I don't want the deal for my rental portfolio... should I try to get it under option and market it to some of my buyers who are looking for rentals?

If the numbers prove out like I've detailed above... what would YOU do?

I appreciate your guidance.

Heather