Verde Valley Arizona USA · Member since 2018 · 115 posts · 98 votes
7y
@Murray Smith: Not enough information in your calculator. You need to drill down on the costs of the Refurb. @Michael Noto is right about the CapEx and I agree with @Jason Medhurst on the numbers. If you can do the work yourself this can work. I see you're an architect so you should know your way around local construction.
Your lender might want to see six months of seasoning before committing to a loan on a Brrrr.
Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
7y
For the renovation what kind of work are you doing? Will most of the large cap ex items be addressed (roof, furnace, windows, hw heater, etc)? If they will not all be addressed then I would bump up your post renovation allowances for repairs and cap ex to 7% each minimum.
Your refi terms are a little optimisic. Best I'm seeing for non-owner occupied is 4.7% and 30 years.
Expect to keep 25% equity in the property. That maxes your refi at $84, 750. You might get lucky and find a lender that does 20%, but don't count on it.
You'll have closing costs on the refi. Figure $3-4k, depending on your area.
As @Michael Noto noted, repairs and CapEx are low. I figure ~15% total.
Finding Management for 8% may be difficult. Especially, if this is your first and only property. Figure 10-12% to be safe.
Any utilities costs like water/sewer or house electric?
Verde Valley Arizona USA · Member since 2018 · 115 posts · 98 votes
7y
@Murray Smith: Not enough information in your calculator. You need to drill down on the costs of the Refurb. @Michael Noto is right about the CapEx and I agree with @Jason Medhurst on the numbers. If you can do the work yourself this can work. I see you're an architect so you should know your way around local construction.
Your lender might want to see six months of seasoning before committing to a loan on a Brrrr.