[Calc Review] Help me analyze this deal

[Becca Pariser]

Hi there! Getting used to the BRRRR calculator and I'm hoping someone can help me understand if I'm inputting this correctly or if I'm missing information.

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[Eric Greenberg]

Quote from @Becca Pariser:

Quote from @Eric Greenberg:

At a quick look spending $100k on a rehab whoch is a fairly heavy lift just to have the ARV $20k over your investment is much too tight. Your projected rents dont cover your monthly costs either.

You are getting a 4.5% loan? The rehab is 6 months and you are going to refi in 8months? Have you confirmed with your bank on that timeline? 

Thank you - this is exactly the type of feedback / coaching I was hoping to get here! 

To answer your questions - 

1. I put in a placeholder for 4.5% based on a lender in my area that said rates started there (calling today to confirm)

2. Do you have a sense of what might be a more reasonable timeline? I haven't walked the property yet but am hoping to do so this weekend. 

3. I agree that $100,000 feels like a lot, I just don't have a sense yet of what the construction costs would be, so went with a relatively high number. 

Could be ‘starting there’ as an ARM but is think a 30yr fixed will be closer to 6.5% or so

 I cant give you a timeframe but id get a contractor or multiple to walk through it to give you pricing and timelines, then add some percentage of time and cost onto those projected numbers for buffer. 

$100k could be high, but it could low. If you just rook a random stab at it you should have someone do a walkthrough with you.