Rehab Deal in Austin - will it appraised?

[Sriratana Sutasirisap]

Hey All, I'm looking at a fix and flip deal and would like to know what you guys think?

Buying at 400k

Renovation at 80k

Selling at 555k.

We've looked at closing cost expenses, interests rates, mortgage for the rehabbing period. If we sell at that price, it should be good profit.

Questions:

1. Will this house appraise at 555k? We looked at comps and other house listed. There really isnt many comps to compare in the close proximity. Main concern is houses around this specific neighborhood has been sold at 400k (poor condition and 1950s style) And there isn't any house that has been renovated that we seen. There is one house that is in same zip code, renovated and roughly same size but it's across the other side in a different neighborhood, listed 550k. In general, is it a bad idea to rehab one house in a neighborhood while all other houses are not renovated and will have much lower value?

2. Is 30-years fixed and an HELOC for downpayment a good way to go?

3. Selling around October in Austin? Is this still good seller market end of year?

Thanks a ton!