Advice for a first time flipper?

[Brian T.]

Hi forum! I've been reading posts here for some time, but decided now was the time to start one :-) Thanks in advance for your input to my question!

I have successfully flipped a few homes in the last several years -- though flipped may not be the right word, as each of them were properties I bought for myself and my family, totally renovated, then sold when life required that we move on.  Each time, I've managed to build a lot of equity into the properties, and its something I truly love to do.  Recently, I decided to try flipping as a side business -- and I just went under contingent contract on my first investment property in an upscale suburb of Philadelphia.  I believe I've thought through all the big questions, and have calculated the various scenarios, but wanted to run the basics of the project by the forum to see if those of you with more experience see any red flags that I haven't:

--I am under contingent contract to purchase the home for $485,000.

--The 1880 farmhouse is 2300 square feet, on a nice lot in walking distance to one of the most desirable entertainment areas on the Main Line.  

--I've budgeted no more than $140,000 for a near total renovation (roof, siding, re-wire, re-configure, addition of master bathroom and relocation of first floor powder room, etc, etc)

--Comps justify an ARV of +-/ $750,000. Factoring in costs associated with the purchase and eventual sale, as well as the rehab, I stand to profit from between $50,000 - $75,000.

--I HAVE done my homework, and passed on a numerous other opportunities in recent weeks where the margins were too slim, or another factor raised a flag.  I believe I am being conservative in all aspects of this approach.

--That said, this is an OLD house, and who knows what lurks behind those plaster walls.  The inspection report was thorough, and did uncover limited asbestos and limited termite intrusion, but nothing I wouldn't expect for a home that age, and nothing my contractor isn't aware of.  It is also nearby (though not contiguous to) train tracks.  The heating system, which I'm unsure if I should replace, is oil -- and though it runs very well and at 85% efficiency, it dates to 1989.  At this point, its the only thing I'm considering keeping as a way to limit costs.

Does all of this sound kosher to your experienced minds?  I see this as a costly deal, but a good one.  Am I missing something?

THANK YOU!