First REHAB - 100K+ in costs

[Edward Kozic]

The property is located in central NJ and needs a good amount of work.  A 4 month rehab with all the bells and whistles; new kitchen, baths, mechanical units, flooring, septic, etc. I obtained this lead from an appraisal officer who appraised it at $180K. After a walk through with my contractor and my own due diligence here are the numbers...

ARV $400K

Rehab $150K

Holding Costs $3K

Selling Costs $24K

Investor interest at 12% annual ROI $18k (Assuming a loan of 300K and 6 month close to close)

Purchase price $125K

This looks like a good deal on paper with a potential for 65K in profits but I feel I may be in over my head. If I hire a GC he will most likely be looking for 10-15% of the rehab costs to cover his management expenses. The listing agent for the property is asking that I submit my offer in writing so I am reaching out to get your thoughts before I jump on this. Should I try to wholesale or let this one go? Need some thoughts from the BP community.