Need advice on potential wholesale deal

[Josh Sicotte]

Needing some advice on a potential deal that was presented to me by a wholesaler I recently met through my local REIA. My plan is to keep property as a buy and hold.

Here's some basics of the house: 

Located in south Knoxville (for those familiar with Knoxville, just south of the Henley St bridge). While it's in a "C" area, it's located less than a mile from UT and downtown. It's a 1200 sq. ft. 4/2, however, tax records indicate a 3/1.5. Taxes are $894/year Built in 1999 and house is in pretty good shape, doesn't need much work at all, mainly cosmetics. High estimate, maybe $4-5k rehab costs to add more value to property thus allowing for slightly higher rent. I would certainly do the due diligence of having an inspector check out property before committing to anything to get a full scope of any issues needing to be addressed. 

Wholesaler has it under contract and is wanting $64k for it. The ARV is around $82-$88k. Hard to pinpoint solid comps in the area as they swing so wildly, but somewhere in the range of $94k.

So here's my potential plan:

A partner I'm working with owns their home outright and is willing to get a Home Equity Loan for the full purchase + rehab costs, for an all in cash purchase of around $69k. Plan would be to complete the simple renovations, find a quality tenant, then refinance to pay off the HELOC. Comp. rents in the area are $900/mo. However, being in such close proximity to UT, it's possible it to rent it by the room (say $300/room), thus collecting more like $1,200/mo.

My main question is, once the property is rehabbed and rented, what's the best way of getting it refinanced and what kind of loan/rates would I be looking at? What LTV% for investment property will banks typically loan on? County has it appraised at $70,900 (as of 2013). If I were to have it appraised and now comes in at say $85k and now have instant equity, will a bank give financing on say 80% of that 85k? What about 85%? At 80% LTV, this would give me a loan of $68k, enough to pay back the Home Equity Loan and essentially acquiring the property with only $2000 (Plus holding costs of Home Equiity Loan + extra interest to money partner). 85% LTV would be really nice as it would give me more wiggle room with extra unforeseen expenses/costs and perhaps need no money out of pocket.  

Seeing how I have little experience, I've got nothing to compare it to. Does this seem like legit deal or is is wishful thinking? Is an 85% LTV common?

Here's a link I included to my rental analysis and assumes a purchase of $64k, ARV of $85k, LTV of 80% and includes taxes, ins., management, etc.. Tenant will assume all utilities. 

https://www.biggerpockets.com/calculators/shared/408703/7be98a82-09de-4af0-b855-a0f8b86182c4

Any input or advice you may have would be greatly appreciated. Certainly, working with a wholesaler, time is of the essence. Also, is it common to negotiate the price with the wholesaler? While I think it's a fair price, would it hurt to offer a lower price? I don't know what price he's got it under contract for. Thanks!