My initial thoughts are that you bought too high, have underestimated your renovation budget and, certainly, time line and, depending on how much you are refinancing, it's not going to give you much of a return on your money.

This is right up your alley.Cap rates do not tell you anything meaningful about a property except the unleveraged returns and risk (lower cap rate = less risk).

I'm sure it's hard to estimate cost, but what kind of return do you typically see from sub-metering?

If you plan to return, hang onto the house.

The cash flow on that property would be more, since you don't have any debt service, but your cash on cash return wouldn't be very good.   

Bryan Devitt even with the inf coc return?

Aim conservatively and talk to other investors in your area about what their typical returns are.

Your family member could also provide the financing on it and make money every month with a positive cash flow spread between the debt and the rent collected or be like a guarantee person that is the main backer for the long term loan your Bank or other lender that  owns that property with a long term loan with that property  on a security  loan until that loan is paid off.Not saying the fix up budget makes this decision fairly difficult but i would say to not have a house that needs over $5,000 on the "make ready" expense to make a 20% gross return giving a cost price and sales price you gave on your example.What you could do to find a deal is pretty limitless. 

Even if it’s delivered “vacant” it sounds like they’ll be new to returning “squatters” within a week.

@Adam Philpot If they can't provide a rent roll, just request their tax returns from the past few years.