Major Rehab BRRRR Deal Analysis Review

[Jonathan Shepard]

Hello - I am currently under contract on my first BRRRR deal and am in the inspection contingency window which closes 8/15. I would really appreciate some help in looking over the numbers on this house as I feel that I have done all the due diligence I know how to at this point. I have all of the documents in a Shared Google Drive folder for more in-depth review if needed but I have the high-level numbers listed below. Thanks in advance for your help with this and if you have any questions or need any additional information please let me know.

Property: 2868 Ralston Rd Mobile, AL 36608
Purchase Price: $20,500 (personal cash)
Rehab: $55,000 (10% contingency built-in) with $5,000 contingency on top of the total
ARV: $100,000 (comps support higher but staying conservative)
Rental: $850 (Market likely supports $900+ but staying conservative)
Construction Insurance: Plans in place to take out a construction loan
for the rehab $400 for a 3-month term
Tenant Occupancy Insurance: Plans in place to secure a policy at $900 per year
Refinance: I have been pre-qualified by quicken loans for a 75%
cash-out refinance at ~5% interest

Total kept in the deal after holding costs: $10,925 (Will adjust up or down based on rehab contingency)

Monthly Cashflow after reserves held back: $109 ($127.50 in reserves each month)

COC ROI after refinance: 12%