Possible First Investment Property Asking For Advice!

[Alex Harshman]

Please take the time to read my profile to understand the level of commitment I have to this and the resources at my disposal. 

I have the opportunity to jump on my first investment property to buy n hold. I think its a great deal but it could be easily a bad deal with the strategy I have to use at the moment. 

I am looking to use hard money to buy the property and then refinance 6-months down the road. The only thing is the property needs work to maximize the value to get the highest value from an appraiser and the hard money needs to paid off so I don't have to come out of pocket and hopefully pull some money out to put towards the next one..Rinse repeat. 

I know you're wondering what the specs are on the property so I will list them know and ask my questions:

Property is currently being offered at 115k

its a duplex. 3bd 1ba, 1300 sq ft on both sides

In the nicest part of town for rentals, Very nice 

Has a small 1 car garage for each side

Rents in the area and this home in particular are 1k-1.2k per month per side. 

The house in its current status is worth about 160k as a duplex. I can pay to subdivide and increase its maximum value because half duplexes are going from 110-130k per side fixed up. 

The house needs about 40k worth of work (New Roof, interior and exterior Paint, Flooring, possibly new plumbing, kitchen cabinets, kitchen appliances, lighting)  subbed out and around 25-30k if I put in some sweat equity and take away some upgrades. This puts me in at about 155k-160k maxed out for rehab and purchase price not including interest on the loan. Most banks will only do 75% to value on refinance so I need to be above that amount + hard money interest in order to break even or make money. 

From what I am calculating, the mortgage on the refinance will be around 1300$/mo for 30 yr and around 1600$ for 30 yr. including insurance and taxes. Its in the city so I have to pay both city and county taxes and with it being subdivided at the end, I am almost positive I will have to pay double. 

Would this property be worth it even if I have to come out of pocket at the end but be making around 400-1100$ month passively if both sides were rented out? 

Also, If I lose a renter, I will be coming out of pocket approx 200-400$/mo. Its less risky being two units but is it worth it? 

I do not want to pass up a great deal, but I am willing to wait for something better if I can. I also have to kind of make the house look like its going up for sale (flip) it to maximize its value for the most refinance value even though its a rental. Is there anything I am possibly overlooking? Anything I am over compensating for? What are your thoughts or advice for me as this is possibly my first investment deal? 

Also, Is there a better strategy for me to acquire this property or others? I am a military veteran so I have access to the VA loan, but the one half is not "livable". I want to achieve the highest amount of cash flow, and I know I will be achieving at least 50k in equity afterwards.

any and all help is greatly appreciated! Thank you for reading!