If you're just trying to keep the home in the family, and not make any money on it, then you'd sell it to that family member for $114k.You could also in theory carry a note for $175k, or they could do a cash out refi on another property, a margin loan, the other normal ways people come up with cash besides saving it. 

It is an older home however the margin seems to be between $ 50 and $75 k after repairs?

In a challenging market contractors and subs are willing to work at smaller profit margins to keep their crews busy.

At the numbers that I have seen you would not be able to cashflow at anything below 10%.With such a low down payment you would need to buy insurance that would eat your margin up.Anything below 20% gets tricky. 

Now your margin increases and your float decreases because they will increase your leverage.So now the flipping network is set-up and properties are coming in, getting rehabbed, and sold and now you can look for nice, portfolio worthy assets and now you can afford much higher quality assets. 

Margins are still great and markets are holding pattern and not tanking. 

This property is in a very nice area so it will be easy to shift to mid term or long term but the profit margin is just way better in short term rentals.

In my area in Washington State prices are high and with mortgage rates pushing 6% the profit margin is tight.

I got it from a larger wholesaler and the margins are thin, so to get the best return, it needs to be “nice” - have a little bit of that wow to it to maximize ARV to compare to comps, but with a real cap on expenses.  

Also the appraisal addendum does not fix everything....especially for low margin buyers.....I would want some of those funds in option or non-refundable earnest money.