What interest rate should I expect to pay to buy, fix and flip?
I am a newbie outside of Syracuse NY. I am interested in trying my hand at a fix and flip. I may have the opportunity to borrow the investment capital from a family member. Not as charity or a favor but as a win - win proposition. I would expect this to be a formal arrangement where I pay interest on the loan. We are talking about a purchase price of maybe $120K, $30K in repairs and a target selling price of $210K or so. So I would borrow $150K for what I hope would be 6 mos. 3 mos to rehab and 3 mos to sell.
My question is what interest rate should I be willing to pay? The benchmark for me would be what I would have to pay in fees and interest if I borrowed on the open market. What would that number likely be? I know there are a lot of variables: my credit rating, location, the deal, etc but could people give me some idea? Thanks