This one can add up if you miss it!!
Does your lender charge interest on the drawn balance or the full loan amount?
On a $191K Henry County flip, $136K funds at close and the $55K rehab comes in draws. If you're paying on drawn funds, month one is about $1,190. If your lender charges Dutch interest, you're paying $1,671 from day one on money still sitting with them.
Over nine months that's about $2,500. Nobody quotes it, it's in the term sheet, and it never comes up until you're comparing statements.
Taxes are the other one people miss. Georgia assesses at 40% of fair market value, no homestead exemption because you don't live there. On a $160K basis in Henry that's roughly $150 a month.
Which way does your lender bill it?