I was thinking more along the lines as a fix and flip to a first time homebuyer but it sounds like that market of buyers maybe slim.   

We can likely get the savings up to that level within the next year but even with a good down payment, the pickings are somewhat slim as most of the units I've looked at are asking too much to make the deal work.  

This must be in the contract BEFORE both parties sign or your chances of it being accepted are slim.

You have to get the land REAL CHEAP and make sure SITE COSTS can be kept to minimum to try and curb risk.If you pay a premium for the land where margins are slim and everything has to go right to turn a profit then the risk versus upside ratio is out of whack.I have been in the business about 15 years and I listen to those in the business over 40 years and own millions of sq ft. in properties.

From the math you provided and the two loans your repaying, you have a slim profit margin for a flip and you might be a little upside down if you choose to refinance and rent it out, depending on your monthly payments plus loan payments.

Sure, nothing can go wrong and you'll make some money, but the chances are slim and it only takes one unforeseen problem to bankrupt you.

The inventory in my area is just becoming slim pickings.

I'm trying to be realistic and not pessimistic, but I'd say the odds of this person moving in are decent, the odds of him buying, I'd put at very slim.

You can find a slim nightstand that will work.

As both @Joel Owens and @Brian Mathews have stated, the profit margins are slim,, they are virtually non existent when you factor your overhead into it.