Analysis welcome

[Kerry M.]

I have been on the phone nonstop since my last posting. I welcome thoughts. This is the second investment, fifth home I've owned but only own one home now and this potential one. Purpose primarily is student housing for son(s.)

Numbers:
Property 4/2 SFH HUD home, former duplex in safe neighborhood, 2700 sq ft in fair condition, 3 miles from campus in low foreclosure area, high demand/occupancy/investment near college
Assessment says needs 7K in repairs
Property worth (by assessment) 80K quick sale in finished condition w/in 30 days/if in presence of other foreclosures: 60K, conservative value 70K
(3/1 Property next door sold for $65K last year, Nice 3/1 on same street listed for 89K, 180 days on market)
Paying 26,400
Rehab needed 15-30K (done mostly by husband & sons)
Own cash: 26 + (15-30) for 41-56K total
monthly payments $500 + (311-622) = 811-1122/mo
have 9K in bank to make first 8 months of payments
(15K at 9% on 5 year loan is $311)
hard money loan preferable to other financing but not needed
Exit strategy: 1) Bank financing (after 6 months) to repay rehab costs first, initial investment 2nd
(How do I guarantee a bank cash-out refi?)
2) Lead paint certificate for rentals 2-4 @ 1150/semester = 2300/yr * 2-4 = 4600-9200/yr = 6900 average revenue 10% ROI?
Nut: 70% cash out refi on conservative 70 (bank value of 75) = 52,500
52,500 - 26,400= 26K
If repairs do not exceed 26K, Nut will be ins and taxes, legal, 1/4 util for son
If they do exceed 26K then remaining repayment of initial funds will add $500/mo

Submitted the signed contract to a lawyer for review. Still need to talk to an accountant. Found rent estimates by talking with a local investor who also lives in the area and has been rather successful. Submitted home inspection to a handiman service (a friend) for a baseline of costs. Looked up codes on county website. No permit needed on regular repair of home, including plumbing, electrical and mechanical - although work has to conform to established guidelines. I have talked with the Maryland Dept of the Environment, found a asbestos landfill and contractor who would accept encapsulated material. It is a small job - 6 feet of asbestos tape on an unused heating duct, non friable, done with caution. I have talked to a lead inspector and plan to attend lead abatement classes before doing work in order to rent.

Thank you!
Kerry