Please Help Confirm My Deal Analysis is Accurate
Hi BP,
I'm a newer investor, only purchasing our first real estate investment property in 2020 (SFH). Our 2021 goal is to buy a small multifamily, preferably 4 units. I found a property that is in our focus Atlanta neighborhood but would require a ton of renovating and seller financing to make it work. I was hoping the BP community could take a look at my numbers to ensure everything pencils out before I talk to the current owner. I want to be confident that everything is in alignment/accurate.
A little background, I have an investor willing to allow me to borrow $100,000, in return for $112,000 when I refinance the property in roughly 15 months. The seller is firm on a $200,000 cash purchase price for the property, which is a quadplex.
Specific Questions:
- - Any expenses inadvertently omitted either within my holding cost or seasoning period?
- - Do all numbers make sense?
- - Any suggestion on the structuring of the deal?
- - The refi wouldn’t occur until 2022…..I am concerned that this could be a huge risk depending on if we see a dip in property values by early 2022. Thoughts?