Ive noticed more and more that there are many distressed homes in the Bucks and Montgomery county, PA area and in light of what is going on with the economy right now, the market in this area is still very hot.

@Gene Guarino Would love your thoughts on some of the above concerns about opening a RAL in 12 months in light of current COVID conditions. 

Here is the breakdown:  - Price for Door and Transom - 1600, - Material 340- Custom jamb and labor to install everything = 1260Here are the details of job:- supply and install double 32 inch door with 5/4 jam thickness with 4 5/8 clear pine jam ,6 ft 8 inch height , 15 light interior French door , 1 3/8 door thickness- satin nickel hinges and flush mount satin nickel slide bolt - To supply and install transom window with 4 5/8 clear pine jam , clear glass ,size of transom window is 651/2 inch wide with a height of 11 1/2 inches - Create custom extension jams due to 13 inch wall thickness and trim out with flex trim matching radius of transom window 3 1/4 colonial casing with 5/4 x6 to be on top of door with solid crown and nosingHere are pictures of what we are trying to achieve before and after:

It was light bulb moment for me once I realized there LONG TERM plan. 

From the kitchen cabinets, windows, toilets, faucets, appliances, lights, ceiling fans, marble counter-tops, doors etc.

With an investor client who really doesn't know the first thing about what goes where, it may be a first deal, rehabs are scary, so far only selling rent ready rehabs to these types of buyers,  I think having a somewhat turn key light rehab option would be great. 

A warning to others and a position I hope your not in. 

Any warnings?

But I’m struggling at light due diligence part, it’s my first day trying to learn the ropes and it’s confusing if you have any tips I’d appreciate it.

As Amish Tolia said you were light on some stuff but conservative on others and overall if it’s in good shape has a chance to perform nicely, especially if you included the debt service from the HELOC.If stuff at these numbers is attractive to owner occupants as opposed to just investors then exit is much easier (and more profitable) and you have a few thousand in pay down to include in your overall return.