Need some advice. I JUMPED into the deep end of the REI Pool.

[Cody Campbell]

Hey BG community,

I jumped into the REI and would like some friendly advice about my next step. I recently purchased a property that had a 3/1 house on it, as well as a 4/2 apartment. The asking price was $79,900 and after talking with the realtor and luckily the owner of the property found out why it had been on the market for so long and why he was selling. I ended up getting the property for $35,000 and paid all closing cost making the deal right at $37,800.

It is currently being remodeled and repaired with a total cost of $15,000 for rehab. The property is about 1/4 mile from a university and would be great for students. The property as a whole should bring in $1900/month (gross) 

No here is where I need the help. There is a brand new construction in the same area (actually closer to the university) its a duplex of 3/3 (2 units) Each unit should rent at 1200/month. Everything is brand new. They are asking $250,000. 

Here is my plan. Hard money lend the 50k to purchase the new construction duplex. After rehab on the other property, the ARV should be 100k and i would refinance the with 70% LTV and cash out the 70k pay back my hard money lender and have 2 properties that would gross me $3400/mo.

Thoughts?