Houston deal analysis

[Alex T.]

I'm looking at a 3/2/2 SFR in Kingwood, TX (near Village Springs Drive), I plan to put in quite a bit into the rehab and after-repair-cost would be around $126k (I'm using hard-money lender funds with a plan to refinance for a conventional mortgage after repair). According to my estimates, the rents in this area would be around $1400. It's hard to estimate exact CAP/C-o-C given that this will go through a hard-money lender first, but it looks like I'd be getting around 6.8% cap and a little over 8% C-o-C with a high chance of appreciation due to area.

Could you guys provide your feedback on this deal, whether you think my estimate on the rent is accurate and whether I'm being overly naive here? Thanks