Getting started, need advice.

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Hi Everyone.
I am getting ready to do my first deal. Everything looks/feels good but I would like some advice from those of you that have some experience.

I found this deal through someone that I know that rehabs and rents houses as his primary living. I have seen the homes that he does and he does great work. The home is being sold by the bank for around 25k. It needs some rehab work but is in a good neighborhood. It is structurally sound and the neighboring houses look quite nice. It mostly needs some curb appeal. It last sold for 78k in 1998. The city put a value of 68k on it for tax values. I had a friend who works as an appraiser look at it and he said that after rehab it should have a value between 80-85k. The way the deal would work is that I would by the home and rehab with a hard money loan from an investor that he knows. On paper I would own the home with a lien to the hard money lender. At the end of the project (rehab) which should be around 4-6 weeks I do a cash out refinance to payoff the rehab and hard money lender. Right now we are talking about the final price being in the 55-60 range with between 3k-5k kicked back to me at the time of refinancing. With this money I would pay off the remaining balance on my car note which has a payment very close to the mortgage taxes and insurance on the house. Rents are around 600-625 per month for similar homes in the area. The way I look at it is that even if there isn't a renter in it, I have the same monthly payments plus I gain some immediate equity in the property. Overall it seems like a winner right now. I know that this seems like a lot of cost for rehab and lending though.

What do I need to watch for in a deal like this? What could go wrong? What should I look for in the original purchase agreement? If I get the house for 55k I am essentially paying 30k for the loan (about 1 month) and the rehab:
1) siding
2) roof
3) 11 double-hung windows, 4 glassblock windows
4) clean yard
5) repair fence
6) replace attic windows with vents
7) replace garage door
8 ) install lattice around porch
9) troubleshoot plumbing/electric, make all minor repairs
10) LR-patch/paint, new carpet
11) DR-patch/paint, restore hardwood floor
12) Kit-drywall ceiling, replace countertop and backsplash, install vinyl floor, install new door to basement
13) Hall-install new thermostat, patch/paint walls, new closet door
14) Bath-???
15) BR1-remove wallpaper, patch/paint, new carpet, new door
16) BR2-remove wallpaper, patch/paint, new carpet, new door
17) Basement-complete demo of walls, patch ceiling, paint walls/floors
18 ) Basement Hall-patch/paint with new floor

New light fixtures, switches and plugs are included throughout.

Thanks a million for any help. I really want to get that first one under my belt and after looking at about 15 deals this is the best that I have found.