Investing Own Cash into Deal Advice

[Joe Conklin]

I plan to undertake my first buy, rehab, rent, refinance deal and am looking at homes in my market.  I have private money of 30-50k available to me in which I am paying out 6%.  I also am willing to put $50,000 of my own cash into the deal.  It is a little bit less than 50% of my net worth but am willing to do this because I believe that buying a fixer upper cash will create an opportunity for a better deal.  I have some reserve money ($15k) that is liquid but this is cutting it close without tapping into my company issued 401k.

Numbers:

3br/2ba Single Family
ARV: $125,000
Rent: $1,400 (conservative)
Purchase Price: $50,000
Rehab: 30K
Closing,Refi, Inspection Costs: $10,000
Taxes: $370 / month
Interest Paid: $1800
- I will add $5,000 in extra costs in the numbers to compensate for running over budget somewhere during rehab or other unforeseen costs.

* My lender has a 12 month seasoning period before I can refi and pull 80% equity out. However, I do have the option to use a HELOC to pull cash out faster as others have mentioned on this site.

80% of ARV = $100,000

$100,000 - Closing, refi, inspection - Rehab - Interest Paid - Extra Costs = Purchase Price

100,000 - 10,000 - 30,000 - 1,800 - 5,000 = $53,200 (Max Purchase Price)

Cash Flow Per Month = 

*factoring in 5% interest rate

Rent - Mortgage - Tax - Insurance - Vacancy(10%) - Maintenance(10%)

1400 - 540 - 370 - 50 - 140 - 140 = +160 per month

Any feedback on this deal and situation would be great, feel free to poke holes in it!