Crazy (but maybe not) idea to buy at 85% of asking

[Jeff Fairchild]

Since I'm a new investor, I'm obviously trying to figure out as many ways as possible to not lose deals. One crazy idea that I came up with is:

Arv 210000
Asking 200000
Use option - purchase price 170000 (85%)


Repairs 2000
Staging 2000
Option Cost 10
Marketing 1500

Gross Profit 210000
-170000
40000

Net Profit 34490

So, as you can see, I would negotiate a very small option cost of $10 because I was basically doing 2k of repairs and 2k of staging and money marketing their home, all at my expense. I avoid all of the hard money loan costs, and all closing costs (i think). So investment of 5510 turns into 34490.

So what is wrong with this picture?