Rehab on a 203k in Tulsa Area

[David Schneider]

Hey BP community,
My wife and I are looking for our first home and trying to do a minor flip to get our feet wet.

After passing up some good deals, we've found a house that makes sense financially and we like emotionally. (in that order)
It's a 3 bed 2 bath 1800sqft house with an extra large living room and a small craftroom/office thing.

It's a short sale, listed at 55k. It's was on the market at 59k for 6 months and only 3 people went inside because:
The yard is a mess. Utterly overgrown and trashed. The house is in really good shape though. The external has new siding within the past 3 years, and it looks like a newer roof. The listing agent said most people won't even go inside because of the yard.

We're planning on offering 45k and looking to do about 30k in rehab. There is a similar house in year built/sq ft/lot size just a block away that sold 2 months ago for 123k. So we feel pretty safe. We don't have to make 30k in profit because we're planning on holding it for 2-4 years while we live in it.

We're on a 203k loan (and we've talked to the listing agent and mortgage broker and both feel we can get the loan done before the sellers bank demands closing) and a 203k wants licensed contractors to do most of the work.

So without further ado:

Repairs Number of units Cost
Drywall repair 25/patch x 5 500
Tiling in Kitchen 7/sq ft x 84 650
Refrigerator 1 2500
Dishwasher 1 500
Granite counter tops 60/sq ft x 54 3200
Oven 1 600
Paving the driveway 75/# of square yards 2500
Updating 2 bathrooms 2 2000
New fencing 200 lin feet 1500
New Carpet 400 sq ft 1500
OR Hardwood floors 400 sq ft 3000
Dumpster 1x2 500
Landscaping 3 yards 1000
Opening front porch windows 300/window x 3 900
stone walkway .05 x 5616 sq in 310
Paint interior 1800 sq ft 500
Labor .5 of total cost 10000

30160

Offer on House 45000
Rehab amount 30000
Total loan amount – down payment 72375

Closing costs 4300
Down payment loan 2625
Upfront Cash needed 6925
Monthly payment ~550/month

Do those numbers look anything close to realistic?