I did my homework on the property and found out from my Insurance Agent that roof shingles would have to be replaces because no Insurance would carry out policy on this property once I acquire.So we are about to sign a contract with a seller that has no cash reserves to be able to replace roof shingles.

@Ryan Detzel whatever your going to do I would suggest doing your homework.

Or we look at all types of lending options until someone says yes and the math works for you, or you chose another path. 

Joint venture offer - which is what you described above but instead of having an appraisal as the basis of the price, give the seller 50% of the profits on top of the cash offer.For example, say the house is worth $300K with repairs of $50K.Use the 70% rule for quick math.1) Cash offer - $160K2) JV offer - assume profit is 20% or about $60K, offer then is $190KThe way I would structure the JV is:the seller deeds you 50% interest in the property (so you become TIC - tenants in common) so you are more in control and you should rehab and put money in a property only if you own it or own a part of itThere is a separate JV agreement that stipulates you will rehab, market and sell the property and give the seller 50% of the profit on top of $160K quick sale priceHope this helps.

However, after doing some quick math, I've determined that it's going to cost me about $28k to sell the house. 

There is almost no amount of money that I would trade for my time in college and the 25 years of friendships afterwards with my college friends.And I did learn a lot too...language, math, reading, writing, speech, economics, marketing, accounting, psychology, business law, communication, etc...education that I use every day and continue to build on.There are plenty of affordable colleges where you can learn this stuff efficiently. 

I'm currently analyzing for practice to get used to the process and actually discover what's out there, and how the math is supposed to work.

Okay, here's a doozey.Given: Rate and term on a first lien mortgage, rate and term on a seller second, composition of capital structure (e.g. 75% commercial mortgage, 15% seller note, 10% buyer's purchase equity), net...

I am not a fan of house hacking but do the math and compare turnkeys out of state and househacking cause the numbers will tell you what to do.

You need to do some homework and look at demographics one elementary starting place is an app called...