First time investor analysis help (Flip-In)

[John Armando]

Hello,

I am a new investor, and my fiancee and I are looking to do a Flip-in. We both work in Boston and live in a nearby suburb just south of the city within walking distance to the primary subway line (30min. door-to-door commute). We plan to live in the area for another 3-4 years before moving to a further away suburb, and would like to start investing in real-estate on the side of our full-time jobs. We think a flip-in may be our best option as we will have a longer time-line for re-hab. We hope to continue renting the property after moving out and using some of the equity to help with a down-payment for our next property. Alternatively, if the market has appreciated well enough selling out and using the profits via a 1031 exchange for our next property or permanent home. 

Here are the specs for the potential properties:

List price: $393,000 (I think similar properties are selling closer to $250-260/sqft. based on the work needed)

Sqft.: 1381 

Beds: 3

Baths:1 (we think we would want to eventually put in a half bath if possible)

Location: 10 min. to train station, 1 block from golf course, in a family type neighborhood, corner lot

House: Cape, with fireplace, single car garage, built in 1925. 

Work needed: new garage door, paint throughout, exterior is fine, new drywall (40sqft), light fixtures, hardwood flooring (1 room, approx 198 sqft), new bath floor tile + vanity + bath/shower combo, landscaping. 

Reach updates: install new 0.5 bath, install granite in kitchen, update appliances, re-tile kitchen floor (~100 sqft), add kitchen backsplash, paint exterior

We would do as much work as possible ourselves, but for bigger projects (electrical, plumbing, major tile) we'd look to hire. 

I estimate based on craigslist adds we could rent the property for $2200 right now, but definitely with the improvements. The area has a growth rate of 6.7% in rentals over the last year. 

What is the best way to assess a flip-in with a 3 year owner occupied timeline?