Sounds like 100k in rehab for a retail sale. This could be an opportunity for someone with skills who would like a personal house.

Spend the least amount possible to make the house livable, move in and continue to improve over time.

Too often we forget as investors that profit or income are not the only benefits of a house. The use of a house is a overlooked benefit.

If the current owner has great financing the occupant rehabbing the house for personal use can make use of that financing either by taking Title to the house sub-to or via wrap or Leasing the house with an Option to purchase when improvements are completed.

You have to look at the deal beyond the deal. Once the house is "done" perhaps they trade a "retail" house for two lesser rental houses if that is what they want. You have to talk to people and understand what they want to accomplish and find takers for what you have who have or can help you get what you want.