quick analysis for a cash deal, making offer in 1 hour

[Mark Updegraff]

Hey you bunch of insightful RE kingpins!
Newb here again, just giving a quick run down for a thumbs up or thumbs down on a SFR I'm about to pull the trigger on:
Former Rental, on the market at 40k, current tenant caused a kitchen fire, now it is vacant and the price is 20K, got a verbal from the listing agent they will take 18K cash. No other offers on the table, but some dude was starting rehab on the house when I went to look at it... he hasn't even made an offer... weird... anyway, we kicked him out to look at it, called the listing agent and said WTF!!

OK OK I digress.
Guessing the rents on the house will be $775/mo + all utils.
Also guessing that rehab costs will be ~10k & closing costs about ~2k
so I would be in for 30K. Would plan to refi back out at 80%LTV after rehab. Guessing rehab would take 2 months. Quick close would get me student tenants, perfect timing.
Here is what it needs for my 10k estimate:
Roof repair (spot where kitchen fire was, also saw another are. Looks OK from outside, but needs some attention in spots.
Furnace needs a cleaning at minimum, power / services are off, so not sure if it is working.
Needs all new floors (carpet)
Needs Paint Sprayed EVERYWHERE
Kitchen / Bath need Gutted
Electical fixtures need replaced.
Exterior OK, maybe clean up, fix basement door, add privacy fence.
Paying out 3K in labor.

Sound Good?
Thanks!!
Mark

[Dale Osborn]

Relying on others opinions is not the best way of doing things unless you want to be able to point the finger away from yourself as to why a deal fails. The due diligence items need to all be examined by you. Hope you get things organized and get into somm great investments based on your sound evaluations and not on opinions of others!