BRRRR creative financing with HML?

[Ariel G.]

Hi. Can't seem to make a strategy based on HML. Let's say 100k market value home bought at 70k. Assuming: HML financing 55% at 12%= 38500 + down payment: 31500 Rent: 1000 USD Assuming 50% rule= NOI 6000 - HML yearly interest: 4620 Yearly Casflow: 1380 ROI: 1380/31500 = 4.38% for the first year Switching to a 5% interest mortgage on second year: ROI: 4425/31500 = 14% If BRRRR applied: 70K + 15K (repairs) = 85K total cost ARV estimated= 105K Refinance: 55% x 105K = 57750 Cash recovered: 57750 - 38500 = 19250 New rent: 1200 New NOI: 1200* 0.05 * 12 = 7200 New Interest payments: 2887 ROI: (7200 - 2887)/(31500 - 19250) = 35% Is this correct? Comments? Thanks.