I will layout some information below and I am all ears to advice from there.Current savings: $12,500 (with the capability to pull funds from an IRA if need be)Currently working with a realtor I've worked with before in my rental market who is also an active investorI have the proper steps completed for a DSCR loan from a company found right here at BP and the process was smooth. 

I would start with something more like a light value-add so you can filter out any bad contractors, get a feel for investing OOS, and lay out a solid network as your foundation.

I have a spreadsheet of how profitable I am going to be with the deal and these are the numbers: 245k purchase price, 20% down (49k) 7.2% interest giving me about $1,330 payments, looking at neighboring rentals with the same layout and interior I can potentially rent it for $2,200 hopefully but I expect the worst. 

We had to correct many of the structural problems on the house and move a couple of things around on the layout.

The renovation will convert a row single family home into 3 family home ( the layout is already there ):- the first flow will be 1 bed, 1 bath- the second floor will be 2b, 1bath- the basement.If those 3 rents, I can easily have $1800-$2000 in gross rent per month.So any creative financial idea I can propose to him?

If you lay out the cost of ownership (maintenance for example), then that is a different presentation.If allowed, it might be interesting to say that we are going to gradually increase your rent.

This thread was not inteded for those who do not have or are not capable of getting the skill sets to do what is suggested.Placing all the back and forth aside, here is how this thread should lay out for members who are lookinig to improve their flip business (or get started in the right direction): If you flip, do the suggestions Jason laid out for you.

They lay out and explain the process.1: The Book on Flipping Houses - J Scott2: FLIP - Rick Villani3: BRRRR - David M Green4: The Book on Estimating Rehab CostsWell worth the time and very informational.Good Luck!

I have not had an official appraisal but two of my neighbors sold their homes recently for 260k and our houses are identical in layout and square footage.

I spent a lot of time putting them in logical order so guests could see 2 views of each bedroom, and get a feel for the layout without an actual floor plan.