Need 3rd party opinion on this deal. Does it pencil for you?

[Joseph Tubbs]

Newly rehabbed rental in Center Point, AL which a tree falls on. 3/1 990sqft $70k purchase price contractor quote for fixing all tree damage, adding a bathroom(3/1->3/2), updating current bathroom as well as updating kitchen. His quote is $30k. All-in= 100k + closing costs, lets say all-in is ~$105k ARV:$155-$160k Market rent:$1200-$1300
Good or Bad deal. Comment below. (Assumption: Refinancing all invested funds out is top priority) (Opportunity cost: finding another deal same price and slightly higher rehab but property is 250-350sq/ft more)

[Alexis Sostre]

Ran a quick scenario with info provided. As a flip: Good deal (strong margin if rehab truly $30k). As a rental: Mediocre cash flow unless its all cash or leave a lot in the deal. Even then, returns are ~7% COC, not amazing for the risk profile. If your strategy is forced equity then refinance to recycle capital: this works, but cash flow will be razor-thin or negative with leverage. If your strategy is hold for cash flow: probably a bad deal in this submarket, unless rents rise or you negotiate rehab down.