My plan to use 100% OPM to fund my first deal. What am I missing?

[Nicholas Caldwell]

I Noticed a bandit sign for an "Investor Special", so in the spirit of hustle I called immediately. The property is a 3/2.5 that needs moderate rehab; can easily add a fourth bedroom and turn the half bath into a third full, update the kitchen and bathrooms, move the laundry from the kitchen to a dedicated laundry room, throw up some paint and other cosmetic stuff. Biggest thing it needs as of right now is HVAC. The seller is offering an Interest only loan for the full cost of purchase and rehab ($27K asking, $20K-$40K rehab) with 18%-20% down at 10%-14% interest. We are going to Offer $20K, with $40K rehab, $11K down, at 10% interest. We don't have 11K or the $500 a month for the interest payments so our plan is to find a second investor to put the initial $11K down and make the payments while we complete the rehab (6 months-ish or less hopefully) For a rough total of 14,000. Once the rehab is complete the plan is to refinance which hopefully will play out something like this....

ARV: $88,000

Refinance: 66K (75% of FMV) with a 3-4% APR.

Pay Off Lender: $49K

Pay Off Investor: $16K ($2K profit)

Remaining $1K goes to an emergency fund for the property.

From there we will either rent it out or offer a lease option to buy or maybe just list it for FMV and take our profit to fund our second deal.

What are you thoughts and advice? Any major flaws to this plan?

Thanks!