First Independent Deal

[Henry LiChi]

Hi all,

I'd like to get some first impression opinions on a deal I am seriously considering.

The single family house consist of 4 bdrm 2 bath,1300 SF house with a 480 SF 2 car garage on a 5000 SF lot.  Built in 2007, exterior is in great condition minus replacement of windows and front door.  The total rehab needs no more than 40k (interior needs lots of work, kitchen and 2 bathrooms will be full gut, the rest is cosmetic with some drywall replacement) to really make it shine and stand out from competition.

The asking price is $87,000.  The same neighboring houses sold recently for 200-220k.  As an architectural designer and having done my own renovations in the past, I truly feel I can get above those comp prices, even if under a few thousand, the profit margin is huge.

Even if I cannot get the price I want, the rentals in the proximity run 1300-1600+ per month, making it a potential hold as well.

What are your first impressions?