[Calc Review] Help me analyze this deal
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I have secured a line of credit from a local credit unit that will let me buy houses with the following terms:
If there are renovations that need to be completed on the property, a 90 day interest only payment period, followed by 3 years of regular payments at a rate of 6%.
If the property is under $50,000 then it will amortize for 15 years and if it’s over $50,000 then it will amortize for 20 years.
Maximum loan amount on properties with renovations will be 80% of the appraised value with improvements.
The financing covers purchase price and renovations up to 80% of ARV.
This will let me buy and renovate with no money down.
The Credit union requires that I do this under an LLC structure.
I am trying to build a model that reflects the standards that I need in order to have rentals that cash flow.
I am hoping to achieve $200 per month after P/I, Tax, Ins, Property Management, Repair, CAPX, Vacancy.