First Deal questions

[Don Harmon]

Hello everyone,  

I am fairly new to BP but am enjoying all the forum posts, blogs and podcasts. I have started reading many of the recommended books on the site. For several years I have wanted to get into REI (Buy/Hold and Flip) but only attempted once and it fell through. I am ready to give it another try and have a potential deal that I have some questions about if you are open to helping.

Below are some of the details of the deal.  I have not looked at the property yet but will prior to committing to any deal.  Assuming everything I have been told is accurate as the property is for sale by a local property group.  What else do I need to consider?

1940 SFR (1100 Sq Ft) with recent rehab, property group believes only carpet and paint is needed. Rent in the area ranges between $700-$850 in the area. They are asking $30,000 and local tax records show assessed value of $55,000. Local comps look to be around the $60-$75K range. Properties around look to be well kept (googles maps but will get my eyes on it before any decision).

I am good with the initial financing and then would plan to refinance after having renters to get my capital back out hopefully for another deal later, following the BRRRR method.

So a few specific questions but am looking for anything that will trip up this deal now or later?  

1- Do I need to create an LLC for this deal before or after purchase?

2- As I am new to this should I have a good accountant lined up before or am I good to find someone before I complete my taxes next year?

3- I plan to look at property management for the property... what do you see as a normal rate for such a property?

4- If the property is ARV is $50K+ and only paint and carpet is needed why would they sell for such a discount? Is this normal for property groups so they don't have to manage renters?

Thanks in advance for any help on this and I look forward to being a part of such a great group!