have a house under contract, stuck need help.

the Arv on this house is about $325,000-
first loan 30 yr fixed 4.25 interest rate, balance is 100k
has a second,line of credit of $166k (this is a variable where his premium will be going up $1,000 next month.)

total balance is 266k- taxes are all paid up to date, no liens
home is a rental for $1,500 month
needs a lot of cosmetic work,

it is in a decent area, 2/1 896 sq ft inside home, about 3,000 sq lot. central location to everything like shops, schools.
Owner is asking for 10k in his pocket to walk away. I have spoken to 2 investors who said numbers are too tight, they would need to invest at least 30k to flip plus realtor commissions.

Any advice would be appreciated, besides walking away from this house.

How much work is needed?