What am I missing/what should I be asking?

[Brian Tschida]

Have my second deal under contract, wanted to throw out some numbers and to see if I'm missing anything. Also the BP calculators are great but this one seems confusing to plug in.

Its a triplex that we are planning to convert to a 4 plex. Currently 2 units are rented at slightly below market rent. Going to keep those tenants to offset the mortgage. The other two will require some more work. We conservatively estimate the rents at (1300,1200,1100,1000) after the rehab.

Purchase Price 275k

Rehab 160k

Conservative Rent $4600

Conservative ARV 370k

For lending, looking at a two part loan (through 1 lender). Construction loan first at 4.5% (interest only, for up to 12 months). Then refinance into a permanent loan (depending on rates) 4.5-5% 30 yr fixed at 75% LTV. I have no problem leaving money in this deal and after accounting for cap x, repairs, vacancy, prop mgmt I have it cash flowing slightly under 400/unit.

What I am missing? What should I be asking? By no means am i trying to hit a home run, just shooting to get on base and aquire a cash flowing asset. Any insight would super helpful.

Brian