Advice on a current deal

[Ziad Hamati]

Hello everyone, would appreciate an advice on how to move forward with a property. 

Property info:

List Price: $360k

Type: Single Family 2BR 2.5BA  (there is an additional office room 12’x14’)

Size: 2500 sqft

Financing and upfront costs:
I will be buying it with a conventional loan, 20% down.

I will put in another 10k down to convert the office room into a bedroom by adding a closet and installing vinyl. I will also add a shower in the 1/2 bathroom. 

Total investment: ~ $92k includes DP, closing costs and capital for rehab

Property Performance:
After the rehab, the property should appraise around $415k based on comps and that is conservative.

After the rehab, the property should rent for $2900/mo (conservative) and should cash flow around $600 (without including repairs & maintenance - self manage). 

I like the deal because i am gaining good equity after the 3rd bedroom conversion and i am increasing the rent from $2300 to $2900. With a 10k rehab, i am gaining an additional 45k in equity (ARV 415k - Purchase price 360k)

Do you think this is a good deal? My COC will probably be around 6% which is i think is a bit low. But on other side i have potential to increase my equity in the deal from 72k to 125k.

Also, how can i recapture some of my capital back? I thought about a cash out refi but it not worth it to refinance at a higher rate and paying closing costs twice (at purchase and at refi). Thoughts?

I know it is a bit of a lengthy post but would appreciate some feedback.