Is this a good deal?

[Lakesha Johnson]

This is a house for sale we found today. http://www.zillow.com/homedetails/5024-Nebraska-Ave-Omaha-NE-68104/75855573_zpid/ Me and my husband are new at this and we want to make sure we are going about this right. We want to start out by flipping and we're wondering if this would be a good house to start with. Based on the pictures, would this even be worth further inspection in-person with a contractor? Also, what types of things should we be looking for as far as rehab costs before contacting a contractor to tour the property? We have been reading "The Book on Rental Property Investing" by Brandon Turner and have been watching podcasts and have attended our local REI group meeting once and plan to keep attending. We calculated a COC ROI of 11%. Are we on the right track? All advice is appreciated. Thank you in advance!

[Tony Castronovo]

How did you calculate the COC return if you don't know the rehab costs? Did you estimate based on the pictures? Did you get an agent to run comps for you to get a good feeling for ARV? Do you know the area and what finishes and features you will need to bring it to the top of the market? Did you factor in holding costs (for how long)? If you were to put this under contract now you would close on it around beginning of Nov (using conventional financing). That could mean that you are trying to sell it around the holidays. You should plan to have some extra holding costs factored in based on time of year.

The home seems like it has some good margin.  Not sure what your strategy is.  You mentioned flip...but then that you are reading Brandon's book on rental properties.  Have you decided which way you would go?