Cant make a decision, need HELP BROOKLYN BRRRR Potential

[Yaro L.]

Hey guys, 

Need your advise as I am not convinced if I should move forward. Here is the potential BRRRR project:

Found a off-market property in Brooklyn, NY (south Brooklyn). Semi-attached legal 2-fam house which is located in a high demand (rental /sales) neighborhood. 

Property: 

Purchase Price: $700,000

Down Payment: $140,000

Closing Cost: $15,000

Rehab Cost Est: $100,000

6 Month Reno Holding Cost: $25,000

_______________________________________

My all in cash for purchase / rehab: $255,000

After rehab Rental:  $4500 monthly Rental from both apartments

NOI: $45,175

Monthly Cash Flow: $1,050

Annual Cash Flow: $12,115

Refi: 

New Appraisal: $850,000

Equity in the house $290,000

80% LTV of equity= $232,000

Refi closing: $15,000

Total Cash Pull out: $217,000

End Result: 

-After 1yr, total cash put into the project: $38,000

-Monthly Cash flow from both tenants $500

-Own a property will should continue to appreciate

Any suggestion, advice, pointers, criticism is welcomed. 

[Brian Garrett]

Your all in is $280k not $255k. You have to include your holding costs.