Apologies for the lack of formatting. I submitted from the iOS app & somehow it was stripped out.
Howdy @Dennis W.
Your post is a little hard to follow. But here is my interpretation.
Purchase price $74,550
Rehab estimate $10,000
Closing costs. ??
Holding costs ??
Acquisition loan (HELOC) $84,550 plus (Closing and Holding costs)
Interest rate 3.74%
P&I (interest only) $263.51
Here is the problem I see with your deal. If you Refinance and leave $10,000 of your cash still in the property that means you will have 2 loans to pay off. The $10K remaining balance of the HELOC and the new Refinance loan.
Appreciate the response. Apologies the post wasn’t clearly laid out.
As to holding costs, I only expect to be rehabbing for 2-3 months, after which the rents will pay for it.
Closing costs may be what I’m stuck with being into property for.
After refi if I have a balance I can pay off my HELOC with cash. Just trying to be into the property for close to no money.
Congrats on moving forward. My comment is $10K in renovations seems very low, though of course I don't know the full condition of the property. I just know $10K spends really quickly, even when doing work yourself.
It looks like you are purchasing for about 75--80% of market value (arv). Personally like quite a bit more spread. One unknown (example bad sewer main) can throw this into retail or above category.
Keep looking, inspecting and prospecting--the deal of the year/lifetime often comes along every month!
Seems like a very tight deal based on the information provided.
Appreciate all the feedback. I should have included more/better numbers or asked for feedback on the repair estimate, based on the videos. I wasn’t very clear on what I was looking for.
Margins are kind of tight here for a true BRRRR deal. I’m comfortable being into this property for half or a quarter of buying at retail as I was otherwise shopping for stable rentals. Will keep a good log so I can report back.