buy and hold investment ARV question

[Mike Carr]

This might be a stupid question but I am having some trouble with this. If total investment for the end buyer is more than the ARV is it still worth going after?

Here is the situation.

I am about to contract a house for 6k. Owner owes 2.8k in back taxes. The ARV is around 30k. The property needs roughly 30k-32k worth of work. (this might be overestimating because it is for a rental not full rehab). So, roughly, the total investment is 41k for the end buyer. The property rents out for $800 which makes a good cap rate. I know a few investors who want rental properties in the area. So the to question is...will a buy and hold investor be willing to put up more money than the house is worth in order to capitalize on the rent income?

This is also an all cash investment so mtg fees won't come into play.