Josh - I think you might have the wrong idea...Agency is NOT like a small business.

hi karl. sounds like you actually have a good start here in this business. bill is partly right. of all the answers here, i think he has some good advice. that being said, you need the think outside of the box here. you said you will have $80k into the place if you fix it up to basic standards, and it would be worth $150k. ok, those numbers are great. but here is an idea you don't seem to be considering. you own the house free and clear. no mortgage to anyone. you and your buddy want cash out of the deal. then your only option right now that really makes sense is to finish the place to basic standards, go refinance the place for what the bank will lend you, split that money and then rent the place out to make the payments. you get the benefit of getting all your money back, plus a few buck on the side i would bet, and when you rent it out, the tenant is making your payments. whats wrong with that idea???

I do have one question, if she is on a year lease and perhaps I am reading it wrong, did you say you collect her rent weekly ? 

Nothing wrong with getting a general idea by using Zillow for what sold/for sale, but the Zestimate is not accurate.

The more someone tells me" it can't be done", the more I am motivated in "proving them wrong".

There is not right or wrong answer their.

Don't get me wrong though I have bought assets using a commercial broker though, but you are paying the broker for the contact.Like what @Justin Fernandez stated, before you contact the owner make sure you have a clear idea on how you will buy the property because the seller is going to ask.

An experienced house hacker in a 4-plex who is also accounting savvy might give you a pretty good answer, but a CPA who handles lots of RE clients would be best.For FHA loans I think the PMI does not go away, but I could be wrong - most likely you will need to refinance at some point to get out of PMI.  

I hit the wrong button.)

I am looking for opinions of others to see if I am in the wrong or if my partner in a flip is.