Reviewing properties as a BRRR

[Joshua Jones]

I'm analyzing my first BRRR property in NJ, just outside of NYC. I'm considering buying the land in cash and using a hard money loan for construction. At the end of the rehab, I'd fill with tenants, refinance and be a happy investor (in a perfect world).

The back-up plan is to simply flip the property and take the cash out now for the next project.

The Project (2 unit Multi-Family):

Acquisition/rehab

Land Acquisition:     275k (I'd use my cash to buy)

Hard Money Loan: 100k (I might use my home equity line at 4% APR over 20)

ARV: 465k (This is my best assumption based on other comps)

Refinance:                348,650

Cash out:                  26,250

Income:

Rent:                         1800x2 (This is conservative)

Capex/Maint. 300x2

Expenses:                400 (water/trash/electric/sewage/insurance)

Using these numbers the property looks like it generates a COC return of about 30% per anum (on the 26k outstanding). Can someone confirm if I'm thinking about this correctly? I use my own spreadsheets in conjunction with the BP BRRR calculator to come up with this estimate.

Any feedback would be greatly appreciated! Thanks!