first deal analysis
Hello,
I have been in the forum for awhile, but am just now jumping in.
I want to list the details of my deal for everyone to critique. Any help or advice is greatly appreciated. As im sure i am or will make mistakes. Just hope i've given myself enough cushion for them.
Anyway details as follows:
2bed/1bath 1100 sq ft (as of now)SFH.
Im making bid for 50,000 w/22,000 in improvement costs. Original price was 79000, but realtor called me same night to say seller would take 69000.
House is in a nice area and good school district. Previous owner must have been meaning to remodel basement, as it is totally gutted.Master bedroom was also previously 2 rooms, but they removed wall. I think I will get more value in 3 bed rather than 2 bed.
Once fixed up and remodeled, it will be a 3bed/2bath 1712 sq ft.
Major improvements include; replaceing interior doors and two entry doors, flooring thoughout house (carpet/tile), ceiling light/fan fixtures,basement(all), new electrical panel,countertops, windows, and paint. It also has an outside pool that is concrete and I plan to resurface and repaint. I have alloted money for pool at 2000 for pool/pump/filter.
I am using a hard money lender for financing details as follow:
Gross Loan Amount: $93,445.50 (closing costs included)
Net Loan Amount: $90,000.00
Loan Term: 3 Years
Amortization Type: Interest Only
Interest Rate: 11.500%
Estimated Payment: $862.50
Buy down Option: 8.500%
Buydown Payment: $637.50
Buy down Costs: Add 1.5% to lender fee
Prepayment Penalties: N/A
Lender Fee: 2% of net (us)
Underwriting Costs: $950.00, due at submission of signed offer
The details will change a little based on end negotiated deal.
I have looked all over the web for ARV, and I am relativley certain that I will be asking 135000, expecting to get 120-125000.
I know I am probably leaving something out, so please ask and I will follow up asap.
Thank you in advance for helping out a new investor!