Should this be my first deal?

[Ross P.]

Okay, I am looking to wholesale a bank owned (REO) property in Lincoln NE. It is certain to be a rental property. It is located near a small university in Lincoln and should rent relatively easily for 700 to 800 a month. It has been on the market for 29,900 for over 4 months (which makes me nervous because everyone has apparently passed on it). It is not livable at the moment and will require 25k in repairs (I have tried to overestimate). That should give you a decent picture of the house. I will put more numbers below.

ARV: 65/70k
My Purchase Price (expected): 19 or 20k
Assignment Fee: 3/4k
Closing Costs for a double close: 600
Financing: I can get transactional funding free on this because it is a small (for a house) amount (family).
Estimated Repairs: 25k
Estimated total cost for buyer: 47-50k
3 bed/1 bath
1196 sf
NOI: 6,274 (700 x 12 Rents minus 1,382 in Taxes, 300 property insurance, 300 in property management. Property managers apparently work for 20 bucks an hour here. At least the guy I called said that is what he worked for).

Please help me see what I am missing. Is this the deal that gets me off the sidelines?

Ultimately, I am thinking that if I can contract it at 19k or 20k and wholesale it at 22k or 23k then the buyer can put 25k into repairs. The buyer would have 47k-50k into a newly remodeled rental property that cashflowing and 15-20k under it ARV.

To get the property I have to put 10% in earnest money. I get a 10 day inspection period (over the holidays). Also, it is my first deal, so it IS possible I won't find a buyer. I can eat the 10% but obviously I do not want that.