Cashing in on equity from foreclosures

[Matthew Spaulding]

I'm new to investing. I'm looking into using a hard money lender to purchase a 1700 sq ft foreclosed home selling at $25/sq ft. Average in my area us $85-95 sq ft. I havent done a walk through yet but from pictures it loojs to be in pretty good condition. Definitely liveable condition. I'm hooing to refinance after a year and cash in on some equity to use for the next rental. My estimates are that the house ciuld sell at $80 sq ft. Does anybody experience doing this? Also, is there anything I should be on the watchout for? Thanks in advance for the help!