The allowable repairs or improvements are very flexable. You can't add a pool but you can repair one that already exists. The current appriased value would not disqualify the property from the 203K program.
answer in todays economic world which is - - - the property is only worth waht someone will pay for it. That is $65,000 in an open market transaction. Be careful you don't spend $35,000 to make the property wotth
$96,000 SOMEDAY. There are a lot of folks who are holding wonderful appraisals and would Love to be able to get 75% of that value. That is a whole heap of the reason we are in such a bind in St. Pete. Please remember that old adage of value only being what it is worth to a willing buyer (not many) and a willing seller (way too may) . . . . . . . . . . In a cold market you can often buy a well 'fixed up' property for close to the cost of a fixer-upper.