# Help me analyze this deal

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I don't understand where the "total cash needed at purchase is \$591,000.  Where does that come from?  Also, we are using a construction loan where we will be borrowing a total of \$1,310,000, \$260K of which is for the fix up.  So, instead of putting the actual acquisition price of \$1,050,000, I had to add that \$260K in.  Am I missing anything?

*This link comes directly from our calculators, based on information input by the member who posted.

Howdy @Tate Siemer

\$591,000 is the total of the down payment (\$327,500), Estimated Repairs (\$260,000) and Purchase Closing Costs (\$3,500).  This is a quirk of this Calculator.  It automatically assumes you are paying cash for Rehab costs.  You need to revise your report.  Just remove the Rehab cost.  The new Cash Needed will be \$331K.  You can explain the breakdown in your post (which you did).  Your Closing costs are way off.  It is normally 2% - 5% of the purchase price.  I would expect them to be more like \$30,000.  Check with your Lender to get a better estimate.

Please provide more details on this project.

What type property is it (how many units)?

How did you arrive at your ARV?

You need to explain your Refinance more? The loan amount (\$1.4mil) is only 80% LTV of your ARV. How do you expect to not pay interest on a loan payment? \$3,888.89 is not anywhere close to a realistic payment. My guess it will be closer to \$7,000. Which makes this a none Cash Flowing deal.

If this is a multi family property you should breakdown your rents.

Most of your expense numbers are not realistic.  Using low percentages for all expenses is dangerous.  You will end up losing your shirt (and a lot more).

Strongly recommend you do more research before moving forward.