Advice on Hard Money Loan for Bank-Owned Rental

[Sara Finley]

Hello!  This is my second post as a newbie and looking for some advice.

We currently have 3 rental properties (closed on the last one in June).  Things are going well but I don't have enough capital right now to do another deal.

I found a Bank-Owned Property listed at $37,000, which i know is worth at least 70 to 80k.

Our previous private lender (aka father-in-law) is not interested in a 4th deal at this time.

3 Bed 1.5 Bath, off street parking, Rents range from $1200 to $1300/month.

I am looking at HML (eeeewww I know) and am wondering if there is a way i can get the full deal covered by the loan (w/little or no cash out of pocket) because of the loan to ARV ratio. If I am reading things right - I could borrow 40K (which is only 50% ARV)? Or am i totally calculating that wrong. Property needs less than $5,000 in rehab, paint carpets, etc.

Orrrr... should i take it easy and build up some capital and wait for another deal?  

Thanks

Sara