Help with BRRRR Analysis please

[Alexandra Sales]

I'd love your input and help on this BRRRR analysis. I've used to BP calculator several times, but am still not sure if I am doing it correctly.

2 bed/ 2 ba (however extra "den" can be converted into another bedroom)

Asking Price: $169,000 .... From previous posts/advice states offer price should be: (ARV x 70%) - Rehab

Rehab: $40,000 (I am estimating on a small property 1,056 sq ft - needs to be fully gutted) 

From analysis: Offer $114,000 (?? seems very low from asking)

20% down

ARV (compared to comps) $220,000

Refinance in 6 months, 30 year amort. 

4.5% Interest (estimated since it is an investment property) 

Rent: $1400 - All utilities paid by tenant 

I am more confused on the purchase price/offer price. Offering 67% of asking price seems very low? The home will need to be gutted, tear down walls/add walls/cosmetic touches etc. 

The first loan will be $92,000 (with 20% down of $114K) and refinance loan will be $154,000 (70% of $220K)? If that is correct, I will receive $62,000 back? If all numbers done correctly. 

Please let me know if I am not understanding this correctly. I appreciate it!