Fix and Flip deal in leavenworth, KS

[Moe Younas]

Hello,

Please allow me to introduce myself; my name is Moe and I am from Denver, CO area. I have been a landlord since 2005 and knock on wood so far so good and I have also done small flip deals before & a good friend of mine used to be a flipper back in the 90s so I have picked his brain as well. I have been reading and listening to bigger pockets for several months and have learned a lot of real estate in general and I thank all of you for that. This site is addictive to say the least.

Now let's talk about this deal I have in Leavenworth, KS. I need some advise. First I would like to find out what do you guys/ladies think about my deal? Please be honest & brutal if need to be. Also, I would like to find out why am I having a hard time trying to get a hard money lender to lend in Leavenworth, KS or just KS in general.

Sales Price $12,900 - I think I can get this house for 10,000

After reviewing comps and speaking to a real estate agent, ARV will be about $125K - $130K (this is after agent said if market stays good she can sell it for $135k-$140k)

Repairs & holding cost (hold for 6 months) - $65K

125k * 85% = $106,250 (I am taking 15% off the sales price for commissions & other unforeseen expenses. I know I maybe am too tight on that. Also that 15% includes what if I have to hold the property for additional month or if my repair estimate goes higher than I thought)

106,250 - $65K = $41,250 net profit

What am I missing, please help?

Also, I have spoken to 3 hard money lenders and they have said due to KS laws they have decided to stop lending in that area. One of which, said no lending in Leavenworth, KS but is willing to talk to me if I have a deal elsewhere in KS City area. Why not?? what is so difficult about KS area that hard money lender won't even do a deal below 65%?

Again, thank you so much for taking the time to read and most importantly taking the time to give me advise. I apologize in advance if I ended up breaking any posting rules. This is my time post here.