It wouldn’t make sense then since I work full time in NY and can’t dedicate myself to it fully.

In my non-expert opinion, I may be able to rent it out for as much as $800, but I certainly don't want to count on that to make the deal make sense. 

@Mathew Scott It really depends, nothing wrong with leverage as long as it makes sense numbers wise.If you like the numbers when principal pay down is factored in, than the deal may work for you.

If you plan to go slowly it might not make sense to do the LLC until you have a few more properties. 

So they are protected in the sense that if you default on your payments, then they can just take back the property from you and still in theory have plenty of equity in it.  

There was a time when you may have been able to negotiate a short sale at a price that made sense, but in today's market there is no incentive for the bank to do that.

Thank along lines of a car that’s upside down, the payoff is worth 20% more than it’s blue book value worth, like pay over 12,000 and bluebook is 10,000, does that make sense? 

For example, if you think you can make $35K post rehab if everything goes perfectly and you get the price you believe you will get, then getting $30K for a quick as-is sale (more than likely to an end user) makes more sense and takes away the risk of unexpected problems during rehab and/or the appraisal issues I mention. 

. - the deal would make sense if the IRS agent wanted to put $10k in it and option grantor would do the deal with anyone, not just "financial friends") can work. 

Wouldn't that make more sense?