Understanding Refinance Strategy

[Colby Hughes]

I am brand new to the investing world and am starting to look for my first deal. My plan is to basically follow the BRRRR method using hard money for purchase and rehab and then refinance into a DSCR for the long term.

Where my confusion comes into play, and I may just be completely thinking to much into it, is estimating my payment on the refinance portion to ensure positive cash flow in the end. 

I have created this hypothetical situation and am hoping someone can either confirm my numbers and understanding or correct me. 

PP: $45k

Rehab: $40k

ARV: $140k

HML: $76,500 after me putting down $8,500

Refinance $76,500 HML into DSCR 30 year fixed at 7% interest and I would have 75% LTV.

By my calculations this would put my payment, excluding taxes and insurance, at $509/month. Is this correct?

Apologies if this sounds like I have no idea what I’m doing lol. While I have experience on the remodeling aspect, the actual financing portion I do not.