Need Help Analyzing BRRRR Deal W Rising Rates

[Jack Vu]

Hello Investors, 

I've got a BRRRR opportunity in front of me that I could be getting into contract within a week from now.

My main concerns are:

1. Will it appraise at my projected ARV?

2. What rate should I use to be conservative in analyzing the refi?

Details of the deal:

It wouldn't be a perfect BRRRR and I'd have to bring about 16k to close if I wanted to refi at an 80% LTV.

Thoughts? 

[Cara Murray]

Hi Jack-

My biggest concern would be that multiple units on 1 lot does not appraise the same as 1 house/1 lot. Have your realtor pull you some comps and try to get them within the last 90 days, for an accurate value.

Also remember you are dealing with more than 1 parcel. Which means you will be doing two purchases (double closing costs) and two refi's (double closing costs. Make sure you are accounting for that in your numbers. 

My comments are only to help you make sure you are not leaving anything out. And in no way meant to detour you. Best of luck!