That insurance may be accurate for your area.

Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.

Although Zillow is a great resource, the numbers aren't very accurate.

Then go back and do your research based on information you gather from the seller and the internet.

Hi Eric,I'm a fellow newbie and just wanted to send a suggestion for you to gather additional information (beyond the seller's claims ) about  the rental rates in that market and specifically for that property by reviewing the rent rolls and current leases in addition to getting confirmation about the landlord's monthly expenses for the property.

You will want to make sure you have extra funds on hand past what your budget calls for because you will likely run into things you could not see before rehab starts, especially if the home is an early build (pre 1940's 50's).Have the cash (with a budget and a plan) since you built your profit into the deal at purchase, stick to the plan/budget.Have extra cashThink ahead - your end point of listing the property with an agent, start to set all that up before you finish so you can put a sign in the yard the day you walk out for the last time plus gather other info - appraisal etc etc.

Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.

Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.

I also wouldn't count on the 60k (if that's accurate) & plan for the best & worst case scenario (break even) for the 1st year.  

Evaluate expenses as accurately as possible (mortgage calculators, insurance estimates, real estate taxes, etc.), read up on the 50% rule on these forums as that helps a lot, in my opinion, determine real current rents and see if the numbers work for you or not.