Would you do this deal?

[Deano Vulcano]

I would like some input on this potential deal. 

3/1

1100 sq. ft.

Purchase price $75k

Renovations $35k (Everything would be new: HVAC, roof, electric, plumbing, concrete patio and sidewalks, vinyl siding, fencing, kitchen cabinets, sink, faucet, new tub and tiled surround, vanity and LVP flooring, it also includes a stove, dishwasher, refrigerator, washer and dryer, so basically a new build).

All in: $110k

ARV: $130k

Refinance with $20k down

Loan amount $90k @ 4.0 % for 30yrs = P.I. $430 + taxes and Insurance $150 = $605/month

5% Vacancy $90

1% Cap Ex $20 (low because everything is new)

1% Repairs and maintenance $20 (same as above)

Straight rental.....$1,000/mo - $735 expenses/mo = $265 cash flow

Renting to traveling nurses(2 hospitals in a small town).... I could get $1800/mo ( but would incur utilities and cable expenses around $250/month)......total monthly expenses $985. $1800/mo - $985 = $815/mo cash flow.

As a long time flipper, I`m used to MUCH bigger spreads of equity, so I`m vacillating on whether to do this deal or wait for one that has similar monthly numbers but more equity. This small town doesn't appreciate much in the long run, maybe 5% on average.

I would be interested in getting your thoughts.

Ciao