[Calc Review] Help me analyze this deal

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[Calc Review] Help me analyze this deal

Owen MitchellPro Member
New to Real Estate 路 Jacksonville, NC 路 Member since 2019 路 91 posts 路 21 votes

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


Does this look right to you? If not, What am I doing wrong? Thank you for your Help 馃榿

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  • Account Closed
    Contractor 路 Flourtown, PA 路 Member since 2016 路 23 posts 路 11 votes
    5y

    Hi Owen. I think this might be over complicating what should be a simple deal? 

    I like commercial lending for projects like this. Looks like you have the cash to do it. 

    After renovation, rent is confirmed at $1200? 

    I like to do 70-75% acquisition lending w 100% renovation lending that rolls over to a 25 yr fixed loan. 


    I do like to pad the renovation budget a little to cover contingencies. 

    If you are managing the renovation, add in 10-15% for that "fee" so you get paid for your work. 

    Lender will lend up to 80-100% ARV depends on lender. Ideal lender is a local credit union or local bank who holds paper.

    Using this approach, you still put in the $12K + closing costs but the renovation should be covered. 

    ARV at $135k means you get about $101K in lending (20 yr 4.5%) which will cost you about $650 per mo + taxes.

    Your calcs should show the property value increasing over time. It could be 3% but we have houses doing 8% per year or more. 

    Hope that helps. 

    Keep us posted. 

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  • Joshua Haynes
    Aurora, IL 路 Member since 2019 路 125 posts 路 39 votes
    5y

    I believe that this look quite good On paper keep it up!

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  • Tim Herman
    Member since 2018 路 2k+ posts 路 1k+ votes
    5y

    @Owen Mitchell You won't be able to get a loan without insurance $40-60 per month otherwise it looks good.

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