Is this turn key a solid investment? Possible BRRRR?

[Tim Vecchioni]

So this is what I received along with the address.

"

4br/2ba

Cap Rate: 13.8% + 60k equity

Income Analysis

Listing Price: $120,000

Total monthly projected rental income: $1800/mo

"

The property sold for $35,000 via public record.

The rehab according to the turn key company is around $60,000.

According to the contract, they will have the rehab done in 60 days from settlement. 

Comps in the area are $165,000+. Closer to $175,000+ but when I crunch numbers, I crunch them worst case scenario. I also looked at rent in the area and his $1,800 does seem to check out, but I put $1,600 to be safe. Here is what I came out with. 

My thoughts are. Get in with an HML, hopefully at a 90/10 split with 3 points at 10.5% interest only. I put 3 months for rehab as well as time before refinance, again assuming the worst. If the house only were to appraise for $165,000. 70% of that (for the new loan) would be $115,500. I would be out of pocket $4,500 + HML Interest, points. However the higher it appraises. The less I am into this property and it is a potential BRRRR that is basically done for me. Aka turn key. Sure I lose out on say $30k in equity. But worst case scenario since I am looking to buy and hold. The cash flow / ROI is way too hard to pass up! If I WERE to get $1,800...this is a grand slam!? Am I missing something here!?