Analysis Help: Good deal or Bad Deal

[John Bongers]

Hello,

  I'm new to real estate investing, but I'm not afraid to work hard to find deal. I've come across a potential deal and would really appreciated some advice from experienced investors. So here it comes.

  I've found a property in the Dayton area that is going for auction through the local Sheriff's office. I've been by the place and it's in a good neighborhood and the exterior of the property is in good shape and should cash flow decently well.  The major down side is I'm not sure if I can get inside to check it out. I have seen some pictures online of the inside, and it looks like its in decent shape and I'm handy enough that I can take care of most interior issues.

 Here's  what I'm thinking. The beginning bid will be 2/3 of the appraisal price around $115,00 for an appraisal price of about $175,00. The actual value of the house is estimated to be at $200,000. I'm thinking of  trying to scoop us the property for under $120,000 using hard money to complete the auction. Then I'd like to refinance and take out 70% of the equity (approx. $140,000) to repay my hard money lender within 3 months.

Does this sound like a decent deal, or am I off my rocker? Any help would be greatly appreciated.