Mobile, AL BRRRR Deal Looking for Rehab Financing
Hello - I am currently under contract on my first BRRRR deal and am looking to secure hard money financing for the rehab portion of the project. I have placed all of the documents in a Shared Google Drive folder for more in-depth review if needed but I have the high-level numbers listed below. Thanks in advance for your help with this and if you have any questions or need any additional information please let me know. If you cannot or will not fund this deal I would like some feedback as to why if possible.
Property: 2868 Ralston Rd Mobile, AL 36608
Purchase Price: $20,500 (personal cash)
Rehab: $55,000 (10% contingency built-in) with $5,000 contingency on top of the total
ARV: $100,000 (comps support higher but staying conservative)
Rental: $850 (Market likely supports $900+ but staying conservative)
Construction Insurance: Plans in place to take out a construction loan
for the rehab $400 for a 3-month term
Tenant Occupancy Insurance: Plans in place to secure a policy at $900 per year
Refinance: I have been pre-qualified by quicken loans for a 75%
cash-out refinance at ~5% interest
Total kept in the deal after holding costs: $10,925 (Will adjust up or down based on rehab contingency)
Monthly Cashflow after reserves held back: $109 ($127.50 in reserves each month)
COC ROI after refinance: 12%