First timer scenario

[Brad McHatton]

Hello there, I'm getting ready to jump into this career/lifestyle and now I'm  trying to "pencil" things out. For a little background I'm in Central Florida with a history in insurance and construction.

So I'm thinking of using a hard money lender and I figured out the following: If I purchase a home for $100,000 (just for round numbers) I'd have to sell this home for approximately $147,000 in order to make a profit, pre-tax of $10,000.

Now I'm assuming the following:

5 months from purchase to sale

$100,000 purchase price

$15,000 rehab costs

$3,990 points

$5,400 monthly interest-only payments

$6,500 approximate closing costs on both ends of the transaction

This comes out to $130,890 but I'm assuming I would have commissions to pay as well.

Please tell me where I'm going wrong, if I am. Maybe this is just the amount of profit I should expect on a low-cost starter. Maybe I'm nuts to use a hard money lender in this scenario (though I don't really see an option). Also, please know that I appreciate any and all help/advice/criticism. I'm sure that there a million different permutations here (shorter/longer timeframe, hidden costs, etc.) but I'm really looking for a starting point.

Thank you very much for your time.

Brad