Las Vegas Section 10 Flip Potential $400,000 Net Upside!

Okay, I have been working on this deal with an associate and friend Victor G. (also a member on this site) for the last six weeks, and we finally have it under contract. Bank REO, 4,700 square foot two bedroom house sitting on half an acre with a swimming pool in the middle of the living room!

The plan is to turn it into a 4 bedroom 4 bath, 5,000 square foot home, moving the pool from the inside to the outside, and of course getting rid of the river rock!

1780 Belcastro Las Vegas 89117 under contract for $380,000. The house sits in Section 10, much sought after and the comps are as follows;

a. Minimum market comp is $146 a foot, $730,000, if we sell at minimum.

b. Average market comp is $188 a foot, $940,0000, if we sell at average.

c. Maximum market comp is $229 a foot, $1,145,000 if we sell at the maximum.

The plan is to turn it into a 4 bedroom 4 bath, moving the pool from the inside to the outside, and of course getting rid of the river rock!

I have just had my architect develop a site plan and "as is" layout, as well as "new" drawings and need to get my electrical and engineering and mechanical estimates, but I figure the rehab could be anywhere from $140,000 to $180,000. With holding expenses will be in the entire project for around $580,000 to $600,000.

The upside is still pretty big even if we sell at minimum per square foot comps. My question is regarding the amount of brain damage and time it will take, and would I be better off working three or four smaller deals. Even if the combined upside is not as great, there is less risk in numbers.

Any ideas?