I have been researching properties for potential fix and flips and I came across this property...and I wanted to get some thoughts.

This property is distressed and the price is listed at $55,000 for 3 beds and 2 baths and 1,746 sq ft ($32/sq ft). This property is only a few doors down, and is selling for $158,457, has 3 beds and 2 baths, and 1,724 sq ft ($91.91/sq ft).

If the property was rehabbed and the price per square foot was the same as the reference house, it would be worth $160,479 (1,724 * $91.91).

If it cost $30,000 to fix the house, that would put the all-in cost at $85,000, and if the 70% rule is applied, then the max list price is $112,335.3 ($160,479 * .70)... which is higher than the all-in cost.

Factoring in all other expenses like taxes, loan interest, fees, etc...the final cost would be roughly $113,321.

So, in the end, sells for roughly $160,479, money in was $113,321, which is about $47,158 profit/41.6% return.

Does this make sense? Are the rehab estimates in the ballpark?  Are any of the calculations off? Other thoughts?

If you would like to connect and talk more about this, feel free to shoot me a message and a connection request.