Beginner house flip question about how to calculate profit

[Jim Lowe]

Hi all, I'm extremely new to the idea of home flipping, I started researching about 3 months ago and read a few books suggested by bigger pockets, I'm sure a lot of my questions can be answered in these books so I will be rereading them.

Anyways, I am trying to get a plan together to flip a house and I'm assuming I will need a hard money lender since this will be my first flip(assuming I can even find a lender to lend to a first timer), I do have a little cash, but not enough to fund the whole purchase and the rehab.

My question is about this fictitious expense report I made up and I'm wondering if this is how you guys would go about figuring out your net profit off a flip? In my head I thought a home for 50k that needed 20k in repairs with an ARV of 105k with comps selling in that same price range would be a great start. Unfortunately after I put together this fake report(below), it seems I would actually take a loss off the deal and I'm wondering where I went wrong? Any advice is welcome, thanks!

REO list price: 50,000

ARV: 110,000

Comps: 100,000-115,000

Offer price: 50,000

Home inspection: $500

Closing costs/taxes/fees: estimated 5,500

Estimated rehab cost: 20,000

Carrying costs: 1,500

Loan amount: 55,000

Out of pocket cost: 20,500 (down payment, home inspection, closing costs and fees)

Loan terms: 12 months @ 10% interest + 3 points at closing

Total cost of house + rehab: 75,500

Sell price: 105,000

Gross Profit: 34,500

REA commission: 5% (5,250)

Closing costs: 5% (5,250)

GC share: 10% of profit (3,450)

Carrying cost: 1,500

Out of pocket expenses: 20,500

Loan interest: 1,000+/-

Loan points: 3,100

Costs: 36,450

Net profit: -1,550

Taxes: loss