First BRRRR using owner financing is it worth it

[Bryan Price]

I have found an owner financed property that is negotiable for 145k at a 6.5% interest rate.$3000 down and $1205 per month for mortgage with taxes included but not insurance. The ARV is 235k and I am estimating rehab cost at 25k. I plan to put the down-payment down and hopefully have it rehabbed in 2 months, then refinance through navy fed for 80-95% of the ltv, rent the property for 1500-1700 and use the money gained through the refinance in order to continue investing. Does this sound feasible? Am I being overly optimistic or missed something?

[Bryan Price]

I am buying from an investor who bought the property before it hit the tax auction from the owner who was going to lose it.

[Marcus Ivery]

Hey Bryan,

It looks like a good deal to me. Don't forget to include your refinancing closing cost into your calculations ($5000 or so depending on the location). Not sure if Navy Federal will charge a point or two on the closing as well, but after all of that it looks like your rough numbers would be around $10K at the end of it all (at 80% LTV) to reinvest into your next project. Best of luck to you, sounds like a fun deal!

Marcus 

[Bryan Price]

@Marcus Ivery thank you for your take on the deal! That is exactly what I needed to hear