Analyzed Property - Potential First Deal

[Dustin M Prasuhn]

Good afternoon,

I am new and do not have any deals yet.  I have been analyzing properties for a couple of months and the numbers never seem to work (which is ok).  Now, I have analyzed a deal and the on the outside, the numbers seem to work out...only down fall is that there isn't much meat for cashout at refi.  

Here are the details: 

asking: $29,500 

arv: $ 52,300 

rehab: $15000 (very conservative) could be as low as $8,000

rent: $550 (occupied) / $550 (moving out at end of month)

My question is what am I missing? I've calucated in the closing costs, HELOC repayment, and bridge loan payment. It seems that there will only be about 5k on cash out refi after closing. I'm not as concerned with the cash out as I am with getting my first property under my belt. What do you all think? Any advise is greatly appreciated.

[Henry LiChi]

@Dustin M Prasuhn be sure you cushion the rehab cost well.  Account for holding cost during the rehab period and however long it takes to sell.  Being that it is your first deal, make sure you vet that rehab cost thoroughly with licensed contractors that are able to do it for that cost.  My intuition is that it is in a D neighborhood based on the selling price and that it is a very very old property.  You are bound to find nasty surprises along the way.  Should not deter you, but buffer your numbers with very comfortable contingencies.  Remember, don't aim to hit a home run on your first deal.  Sometimes it is worth breaking even or even losing a small amount to get the experience and first deal out of the way.  The education alone is worth the admission.