You have just enough (by my standards of risk tolerance) to utilize a hard money lender to assist with a deal provided you have some additional consumer credit lines to fund material purchases to do a pretty decent rehab on an ARV 100K house or less, purchased at 70% ARV minus repairs, needing up to about 30K in rehab.
For example, you find a house that is worth 100K retail.
You see it needs about 20K in rehab including all holding costs not including debt service (utilities).
You pay 70K (70% ARV) minus 20K = 50K
You get a HML and put in 10% DP = 5K
You use your remaining 10K to fund rehab and use consumer credit to fill out the rest (or a different combo of cash and debt, or you can get draws on the HML, but that is more expensive - of course you might need to do it that way because the HML may not want to work with a loan of only 40K).
Now you have 70K wrapped up in the project plus there will be around probably 5K in HML fees for origination and 6 months of holding.
To sell the house for 100K you are lookng at somewhere around 8 percent for realtor fees and closing costs.
So in all, you paid 15K of your own money, and have a profit of:
Selling price - aquisition - rehab - holding costs - realtor fees and closing = 100K- 50K - 20K - 5K - 8K = 17K.
Profit = 17K
ROI = 113%
Please somebody with more experience check this scenario out. I have only studied the method to determine if I should do it and have not actually done this before.