The assumptions I made are below:Closing costs are calculated to be 7% of final ARV purchase priceRehab costs are $100/sq ft and $75/sq ftLoan interest is the loan + 10% back to the private money investor (assuming I go that route)Total cost is the MPP + Closing Costs + Rehab CostsTotal Profit is ARV – Total CostOwner receives the MPP (what I would have paid for the house) + Closing Costs (I would have had to pay for these anyway, I could sweeten the deal for myself and offer to split them with the current owner) + Half the profitPrivate Money lender receives their initial loan plus 10% interestI receive the split profit – interest on the rehab loanMy goal was to get the owner as close to their $200k wish in order to convince them to do this less than traditional (and maybe not even possible) way.

Wish you all prosperity and happy investing.v/rChad King

If you have any specific questions about my experience, I would be happy to share more.https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-dealBest Wishes!

Or, what if you get your wish of lower materials prices caused by higher interest rates?

I wish you much success. 

Which tip do you wish you knew when you start investing?

Great question, I wish you had asked it BEFORE the auction.

Once you get a signed contract from the seller saying that they agree to sell "you or an assignee the property for" an agreed price, you then have the right to buy, sell, or control the property as you wish, allowing the rules and laws in whatever jurisdiction the property sits.In other words, if your state/ city allows you to "wholesale" a property without any improvements, that would be pretty much your process.

I wish I had held more properties in this latest up cycle.

Just wanted to know if anyone had experience working in this area and what challenges I should be aware of, who should I stay away from, and anything else you wish someone told you when you embarked on the remodel.