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Updated over 12 years ago on . Most recent reply

User Stats

390
Posts
104
Votes
Derek T.
  • Real Estate Investor
  • Prince Geroge's County, MD
104
Votes |
390
Posts

Can you review these numbers?

Derek T.
  • Real Estate Investor
  • Prince Geroge's County, MD
Posted

Can you review these numbers and see if I am forgetting something or over calculating something? Credit to Brandon as I believe I got my framework from his site. Thanks.

Purchase Price (B23) $100,000.00
Repairs (B24) $50,000.00
Points Charged by Lender 3.00%
Points Added to Loan $3,000.00
Purchase Closing Costs (@ 2.5%) $2,500.00
Out of Pocket (includes closing costs and payment) $7,750.00
Holding Costs (Taxes/Insur/Util/HOA/Lawn @ 2.5%) $2,500.00
Inspection/Appriasal Fees $600.00

Total Invested $165,750.03
Total Cash Needed From Lender $153,000.00
Hard Money Monthly Payments (16%) $2,031.84
Total HML Payments (@ 6 months) $12,191.04
Lender Loan to ARV 67%
Total Loan Owed Lender $165,191.04

After Repair Value (B25) $230,000.00
Home Warrant $450.00
Termite Letter $100.00
Realtor Fees (@ 6%) $13,800.00
Our Closing Costs $1,500.00
Their Closing Costs $1,500.00
Total Debits at Closing $16,800.00

Total Cash Received if Sold Now $213,200.00
Total Invested (B41+B49) $177,941.07

Total Profit $35,258.93

I have the rehab costs at $42,500 however I increased the allowance to $50,000 to cover any unexpected costs. Also the recent comps are $240,000 (for a great renovation), $225,000 (for a pretty good rehab....nice kitchen, nice bathrooms, good curb appeal, standard everything else), $190,000 (for average rehab.....basic, cut on finishing materials, etc.). I think the agent will come back with best and final and I will resubmit for $105,000.

Most Popular Reply

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22,059
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14,128
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Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
14,128
Votes |
22,059
Posts
Jon Holdman
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

Buy plus rehab ($150 total) is 65% of ARV. That's a SCREAMING deal. You confident about your numbers? Especially the ARV? You're looking at ALL the available comps, and using the ones at the lower end, right?

Your HML is allowing your to defer payments until sale? That's unusual.

Closing costs on the same look low to me. Be sure to do a hold open on the purchase, which will reduce your title insurance costs when you sell.

I didn't go through the math item by item, but the calculations look about right to me.

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