Understanding the finances behind rehabbing a home to buy and hold

[Matt Hendrickson]

I have put in an offer on a house that we are planning to flip. I'm a little concerned about the finances behind this flip.  Can someone please tell me if I'm understanding the financing correctly.

We are going to go with a hard money lender that would finance the initial purchase of the home (obviously charging a steeper interest rate).  The house is comping for about $120,000 to $130,000 right now.  We are hoping to get it for around $45,000 and repairs we estimate to cost $50,000 which will give us a post rehab total for $95,000.  If we low ball the post rehab appraisel to be $115,000, will the lender give us 80% of the post rehab appraised value?  So that would mean they would give us about $92,000 for the mortgage? 

So just to recap what we would have to pay. We would pay the interest charged on the hard money lender and then the difference between the amount the lender would give us and the total cost of the home?

I'm not sure if that all makes sense, but if someone could please help me I would really appreciate it!  Thanks,

Matt