Help with Short Sale / BRRRR Analysis. Lender needed, refi needed
Hi all -
I'm evaluating a short sale with the intention to BRRRR it. I'm currently "house hacking" a 4-plex. This would be my first short sale and BRRRR. I could use some help checking my numbers / plan...
Property details:
SFR - 3br / 1ba
$196k ARV
$20k reno
$222k payoff quote from bank ($137k principal)
Could easily rent for $2,000/mo after basic reno
The owners are game for a shortsale, the bank is game for a shortsale. I need to put the deal together.
I'd like to find 100% private / hard money financing for the purchase + renovation.
The BRRRR strategy tells me that I should offer no more than ($196k * .7) - $20k = $117k
My gut tells me that the bank won't accept $117k on a $222k outstanding loan??? I don't get the impression that there are any other offers.
I'm assuming ~$5k in holding costs for a 4 month reno in a 10% private money loan. Plus $2,500 refinancing fees. Does this seem conservative enough?
If I can refi at 70% LTV / $196k ARV, I'm looking at a ~$960/mo PITI payment, which would be great cash flow after expenses at $2,000/mo rent.
How do I look for:
- private / hard money lender
- bank for refinancing with no seasoning / 6 mo seasoning
Thanks for your help!