Need advice on financing or flipping my first investment property

[John Edwards]

I have a friend who (for various reasons I won't go into here) has a property he needs to sell quickly and that I have offered to buy. It's a residential home that needs some significant interior work to make it desirable. The house has a tax-assessed value of roughly 300K, a Zillow FMV estimate of roughly 350K and I have a signed agreement with my friend for 225.

I think there is value there but after having been through the house a couple of times and having shown it to a contractor for advice on a renovation, I'm not sure how best to get that value out of it. My ideas:

1. Renovate (which apparently will cost well over 100-150K but could improve its value)
2. Tear down (build something new on spec, maybe? I don't have the cash to build out of pocket)
3. Subdivide (it's a lot that's roughly 2.75 times the usual in this upscale area)
4. Or just look to flip it (where would I even begin? My price agreement is good for 90 days)

Any constructive advice from those who have done this kind of work before is much appreciated. I'm looking for help on what might be my best course of action for financing as this was a very sudden opportunity and I only have about 10K in cash at the moment.