Intro to BP + Weighing alternatives on first deal (BRRR)

[Pedro Alves]

Hi BP! 

I'm a new member on the platform as I am to REI at a whole. I've been digesting as much content (books, blog posts, forums, webinars, podcasts, etc.) as possible in the past few months, and firstly just want to say thank you to all the amazing and selfless contributors at BP for all the free content... an education already proving to be far more valuable than the one my student loans provided. Oh well; you live and you learn right.

Any who, I'm narrowing in on what will hopefully be my first deal (BRRRR). My one largest concern right now is if my initial financing strategy is sound. I don't have the means to fund an all cash deal, so I got pre-approved for a conventional loan with 10% down at a fixed interest rate of 3.75%. Furthermore, I'm partnering with my mom (an aspiring RE investor herself) to fund the downpayment, closing costs and rehab.

Below are the quick and dirty facts going into this (w/moderately conservative estimates for rent, ARV, etc. and honest opex's). I would love some advice from the BP community on whether going in on this with a conventional loan is an okay play, or if there are far better alternatives (hard money maybe?) I'm also unsure of the implications a conventional loan would have on trying to re-fi for another 6 months down the road?

Acquisition 

• Purchase Cost: 100K
• Loan Amount: 90K
• Closing Costs: $5K
• Rehab: $22K (in 2 months)

• Total Project Cost: $127K
• Total Cash Invested: $37K 
• Initial Cash Flow: $526
• COC ROI: 17%

Refinance

• ARV: $170K
• Loan Amount: $127.5K (Assuming 75% LTV, 30yrs at 4%)
• Cash Flow: $395
• Money Down: $-500.. 

It feels like a rock solid deal to me, but then again I'm a newbie and could be harshly mistaken... Important to add, while concerned about the looming recession I'm not at all intimated about starting my REI journey now. I believe today is as good a time as any and I'm prepared and excited to put the work in.

(Missing an "R" on my title and can't edit... rookie move)