why is the loan interest rate 12%
Hard money loan is fixed at 12%. Waiting on another hard money provider. Getting approved right now
okay, what is your game plan for this property? and I would try to shoot for a cashflow of at least $200/month
Thank you. We plan to hold this property as a rental.
Its great your running numbers. I would run as many as possible in the markets your looking at to get a feel for the market and can have a larger data base in your head to compare too. Then when you see a good deal, you will KNOW it. Keep up the good work your well on your way!
Thank you. A lot to learn!
@Anoushka Miranda , who is handling the leasing? Many mgmt cos or leasing agents will charge 1 mo rent on new leases and 1/2 month rent on renewals. That is not part of the calculator, but if outsourcing leasing is part of the plan, that may wipe out basically all of your cashflow.
You also have no repairs and maintenance reserves and no Capex reserves. I am guessing this deal will cost you money most months.
Thank you Evan, yes they charge 1 month rent for find a new tenant, that is all. Is there somewhere I can put that in the calculator? I'm sure I can charge more on rent I was under estimating that so hoping for bit more cashflow. I will go back and fill in repairs and maintenance. I do not understand Capex reserves as of yet.
Pass. Every day of the week.
@Anoushka Miranda think big fixes that you need to save up for - a/c, roof, etc.
Thank you everyone. I've finally run all the numbers and have decided to pass on this property. Super helpful. My other hard money lender came back with a rate of 10.45% but I needed a lot more to close. On the lookout for the next one.