First BRRRR! Can you review my numbers?

[David Quan]

BG has been an awesome platform!!  I became a pro member just because I felt like all the free content and podcasts were worth that cost alone.

I am doing my first wave of BRRRRs and jus want the communities opinion on my numbers to make sure I am doing this correctly. As the BRRRR book says, "you make your money when you buy" so I definitely want to buy right. We are in the southeastern Virginia area.

Single family home 3 bed, 2 bath, 1,200 sq ft

Asking Price $104,500

ARV based on comps: 147,000

75% rule: finance out 110,250

Hard money lending: hypothetical case 6 month hold 5,673 ($31/day, points per day) plus 5,250 ($875/month, 10% annualized) = 10,923

Closing costs (3%): 4,410

Doc fee and appraisal: 1,200

Rehab budget: 30,000 (structure good, paint, flooring, roof, bathrooms, kitchen cabs)

Taxes and insurance: 1,500

Offer Price =  110,250 - 48,033 = 62,217

Mortgage would be about $850 a month PITI

Rents would be $1,100

Cash flow would be 250 per month before vacancy, repairs, capex

Ultimate goal is to build portfolio and get into apartments.

Questions:

1.  Am I on track here?

2.  Am I missing any expenses or anything else at all?

3.  It seems a lot of deals in my areas will require me to offer a price that is 40%-60% lower than the asking price.  Is this normal?

Thanks for any advice or help!