@Ezekiel Racelis, Hello, and thank you for your service to our country. I will have to agree with Caleb on this one, there doesn't seem to be much meat on the bone on the intial buy to gain equity. Disclosure, I'm fairly new to REI, but have done a lot of research, deal analysis and learning, so I'm just throwing in my 2 cents. Why does it need $70K for rehab? To me, for a less than $200K market that sounds too high, unless you're almost rebuilding. Have you just taken your agent's word on the rehab cost or have you looked into any contractor estimates or bids? I would suggest finding out as much detail on the deal as possible with values and rehab needs, and then taking that to your local REIA and ask a local investor and contractor for some guidance. They will give you a much better idea of what your looking at. Now if there was some room in the rehab cost to only have to put in $25-50K the deal would look much better. Understand what the rehab really needs, and if the market doesn't justify putting in highend finishings and amenities then don't. From my understanding that will not guarantee you anymore in return so you don't want to overdo the rehab.
