Hi David,It's often said - cash flow is what makes you rich but equity is what makes you wealthy.

I would suggest that you rent the property and consider using a property manager who can finance the improvements for you up front and be repaid out of the rent so you can have passive rental income over the long run. 

If you are borrowing the balance and you are an investor buyer then that amount of cash will get you into a $300-$350k property @8% interest. 

I’m working with my father on managing his RE portfolio.We have one multi family property that is fully paid off and generates roughly $200k in NOI/Cash Flow.

Or minimize your mortgage risk by buying one property for cash or little debt. 

Hey Tom,FHA loans have Upfront Mortgage Insurance that is 1.75% of the loan amount. 

Buy 1 house for $100k cash, it goes up 10%, you have $10k profit.

However, the cash flow seems to make sense and I am wondering if this could be a good opportunity. 

BRRRR: All-cash purchase and rehab of a SFH or small multi-family up to $250k.

Of course if the seller had no debt he could obtain all the loans himself and have the same cash out without selling the business and without having a basically unsecured note for his “equity”.