Zombie-slow-flip-duplex under contract . . . now what?

[Timothy Busse]

Due diligence during inspection period--what are we missing?

We are under contract with our first duplex, that is currently tenant occupied but rotting away, which we intend to slow flip. 
https://www.realtor.com/realestateandhomes-detail/402-Quinnell-Ave-N_Lakeland_MN_55043_M86377-3096

This property (up-down duplex, each unit a two bed one bath) is in rough shape, definitely a zombie in its neighborhood. Our preliminary estimate for rehab was $60,000, making a purchase price of $152,500 a reasonable deal (note that we are planning to use as our primary and rent or Airbnb the other unit, estimating an average rental income of $1000/month).

The inspector is scheduled, we have J Scott's spreadsheet and book on Estimating Rehab Costs in hand, and our realtor is pulling comps to provide an accurate after repair value (ARV).

Our inspector is a former general contractor that is helping in an advisory capacity with respect to estimating rehab costs.  We plan to run our own numbers to get as accurate as possible by the end of the inspection period.

We will use our refined rehab estimate and ARV to better determine if the number make sense for a slow-flip, i.e., break even (or come close to it) over a two year period. After all, its our first deal. We are in it for the education, not a profit.

Are we missing anything big that we should be doing during the inspection period?

Thanks so much BP Community for your insight!

Tim