Is this a way to fix and flip?

[Jesse Kozazcki]

I'm new to the real estate world, but happy I'm finally diving in.

My original plan was to wholesale, as I don't have the capital to purchase and rehab properties, but the more I read/learn/absorb, circuits in my brain connect the dots and I realize different ways of doing things.

There is a property I'm looking at and the asking price is pretty close to the typical ARV-*70%-repairs-assignment fee. But the house is in a location that my wife and I like.

So this is what clicked. Tell me if it makes sense.

I'm thinking what I can do is get the property under contract and then find a hard money lender to lend me money for the property + rehab. Then simply (it's never simple) I fix it, live in it till the end of the year when we go to move out to AZ, put it on the market, sell it, pay off the hard money lender, and boom I just profited much more than if I wholesaled the deal.

Does it work like that? (Using hard money lenders to get capital to fix and flip)

Here are the numbers.

ARV $300k

Rehab $40k and that's giving me a lot of room for error.

Asking price $199k

Negotiate price down to 175-185k.

That's a potential profit of 75k minus tax. That's much better than assignment fee of 10k. Not to mention I can live in the house in the meantime.

Am I delusional or does this make sense?