the necessary repairs are as follows:  water heater missing, furnace looks old. paint all rooms, new flooring needed in most rooms, ( something i can do myself), recondition kitchen, replace entry doors. the house already has a newer roof and newer vinyl siding, virtually no work necessary on the outside. given my rehab skills, nothing will need to be contracted out, so i am able to save a tremendous amount of money on the rehab, which is why the following rehab number is so low.

New kitchen, new FAU, New flooring in main area, 1 new bath remodel and only added a vanity in the second bath.Our target ARV was 285k- We hit our profit criteria at this number.Sale price 305k on 4-15-16Net profit- 35kI didnt have very good before pics- You might notice we used all the same material- paint colors, tile, flooring, kitchen cabs, etc..- Helps keep the decision making to a minimum.

HI @Rich Ng.

The bathtub will need to be refinished.The hardwood floor underneath the carpet looks to be in quite good condition, and should only cost about $1000 to refinish.The painter is due to start work on Tuesday, beginning with scrubbing the walls and ceiling and moving on to primer and paint.

Are you using the same paint colors throughout the house?

I've been involved in several areas of residential contracting, and have owned businesses such as remodeling, paint contracting, and landscaping.

Sanding and priming chipped paint in two spots.

The most common examples are hand railings needing to be installed and peeling paint to be sanded and repainted.Rehab loans can not be closed quicker than 60 days, at least I've never heard of a lender that does one quicker.

I then subtract an assumed $20K for repairs (paint, carpet, seller's lies about repair costs, landscaping, etc.).  

@Allen Fletcher is right on in his assessment of the actual tax being dependent on past use (actually 500K tax free is the top exclusion if you're married and have lived in the property for 2 out of the last 5 years) and future strategy (depending on your path you could exempt all or part of the tax in a 1031 exchange).Your accountant paints the current picture better than anyone.