My first flip - analysis, tips, suggestions welcome!

[Bruce Clark]

I have some buy and holds and am relatively comfortable in that space. However, I am attempting my first flip. I am partnering with a friend who is a general contractor (with an accounting degree). I found the deal and I am going to work on the financing. He is going to manage the construction, monitor the budget, and work with a realtor to sell the house upon completion. We are being very conservative with the numbers.

ARV $175,000 (I have done research on realtor.com and zillow. Based on my research, this number is very conservative. Actually a similar house only two blocks away sold for $200k just two days ago. I have also asked my realtor to pull comps and give me his opinion, and I am waiting on that.)

Purchase price - Asking is $52,000. I offered $45,000 this morning so we will see.

Rehab costs - $59,000 (This is very conservative as well. We have both run the numbers about 20 times.)

I think this is going to be a good deal for us. What does everyone think?

Also, it is not under contract, but if/when it is, I will need to start securing financing. I have never had trouble financing buy and holds though my local bank, but I am nervous about approaching them with a flip. Also, I have no experience with hard money or privatelenders. Any comments, suggestions, pointers are greatly appreciated.