Estimating ARV of BRRR

[Joe Ebanks]

Im looking at a foreclosed house in a good city. I have never rehabbed a house before. Based off comps (and also was appraised in 2012 for 97,500) I think its pretty likely to be worth about 105 currently. 

I am not quite sure how much I want to put into the home, the carpet looks pretty nasty so I was thinking vinyl planks for the whole thing. Potentially opening up a wall and redoing the kitchen to get higher rent... and possibly making the bathroom better as well. 

What I was thinking is that doing all that will at least increase the value of what I spent right? Unless I overpay... or terrible work is done..

So basically I can just ignore the after repair value, and base my buying price off of what it appraised at and the comps out there, so I would be able to purchase at 73500.

I guess seeing the math the improvements would have to improve the value more than they cost. Is that reasonable?