First BRRRR: Go-No Go?

[Sarah Linkenhoker]

We have our first potential BRRRR property under contract. Yay!

Wondering if I can get some feedback on whether this is something you would pursue? I realize that everyone's goals are different, but we are looking to start building our wealth and real estate portfolio. Here are the details.  

SFH

Purchase Price: $265,000

Estimated Repair Costs: $50,000

ARV: $400,000

Total Cash in Before Refinance (including loan costs): $324,000

Total Refinanced Loan: $280000

Estimated Rental Value: $2000

Estimate Monthly Expenses (Insurance/Tax/Utilities/Vacancy/CapEx/Etc) : $1775

Monthly Cashflow: $225

Total Cash left in the Deal: $44000

Cash on cash return: 6.10%

Total Equity after Refinance: $120,000

I've got this feeling that this is just close to being a good deal, but also close to being a bad deal. Any feedback or advice on what to watch out for in this potential transaction?