Is this a good deal?

[Sam Booth]

I am in escrow on a foreclosure that fixed up would be about a 200K property. I can get it for about 145K but it needs a few things as its a 50 year old home in a great location. This isn't my first rental, but I want to run these numbers by people to see if it makes sense to everyone else. 

Rent would be $1600. (Property manager takes 10%)

Rehab would be:

45K for new floors, paint, light fixtures, appliances, some plumbing and miscellaneous (one new window, etc) plus new HVAC and ROOF. I usually do some of the work myself such as demo and painting and installing appliances and basic wood work and trim. 

9K Closing costs (includes a right of redemption bond and 1 point to lower interest rate to about 7%) with payments around $1000. 

By the time I pay the property manager 10% there's about 400+ cash flow a month, not counting for vacancies or major cap ex (which would be taken care of initially with new roof, hvac, and water heater, flooring, etc). If I refi then I should be able to get about 75% of the value back out and walk away with around 41K minus fees and maybe lower interest rate. 

Does this all sound good?

Thanks so much!

[Adam M.]

Ah hold-- on problem here. OOS investor doing 45k worth of rehab. I would tread very carefully-- personally I would pass given the numbers and that you are doing it out of state. Work with local wholesalers and keep underwriting until you find something with a larger spread. Sometimes the best deals are the ones we walk away from.