[Calc Review] Help me analyze this deal
Hi there!
I am trying to analyze this property to better understand the BRRRR strategy in my area. The property is currently under contract, but I am going through the numbers to see if it was a good investment (which it is!). A couple of things coming to this analysis:
1. Hard Money Lender will finance 65% of LTC (Purchase cost: $109k + Repairs: $50k = $103k and I would need to put out of pocket the rest).
2. Bank will refinance from 80 - 85% ARV but I used 75% ARV to be conservative.
3. What I really liked about this deal is that the appreciation on the area of the property. I used 8% but I don't know if that is conservative.
One thing I would need help with is understanding the closing cost. I added $400 in inspection fees, $100 in option fee and $1090 for earnest money deposit. What else would you add? Also is there some closing cost on the refinance part that I did not include. Any type of help would be very well received.
Thank you!
*This link comes directly from our calculators, based on information input by the member who posted.