Help with Short Sale / BRRRR Analysis. Lender needed, refi needed

[Elliot B.]

Hi all -

I'm evaluating a short sale with the intention to BRRRR it. I'm currently "house hacking" a 4-plex. This would be my first short sale and BRRRR. I could use some help checking my numbers / plan...

Property details:

SFR - 3br / 1ba

$196k ARV

$20k reno

$222k payoff quote from bank ($137k principal)

Could easily rent for $2,000/mo after basic reno

The owners are game for a shortsale, the bank is game for a shortsale. I need to put the deal together.

I'd like to find 100% private / hard money financing for the purchase + renovation.

The BRRRR strategy tells me that I should offer no more than ($196k * .7) - $20k = $117k

My gut tells me that the bank won't accept $117k on a $222k outstanding loan??? I don't get the impression that there are any other offers.

I'm assuming ~$5k in holding costs for a 4 month reno in a 10% private money loan. Plus $2,500 refinancing fees. Does this seem conservative enough?

If I can refi at 70% LTV / $196k ARV, I'm looking at a ~$960/mo PITI payment, which would be great cash flow after expenses at $2,000/mo rent.

How do I look for:

- private / hard money lender

- bank for refinancing with no seasoning / 6 mo seasoning

Thanks for your help!