Michael Blank SDA question

[Carnet Williams]

Hi,

I am analyzing a 24 unit apartment building with a purchase price of $1.1M. I have bids in to do about $300K of rehab on the property. I plan to get it done in the first 18 months. I have found a lender who will roll that into a construction loan at 75% LTV. On the SDA I was putting the $300K into "repairs and reserves" row in the summary. I then added a second mortgage for the $300K into the loan tab. This didn't work b/c it threw off the calculations thinking I was financing $1.4M in loans as well as $300K in rehab. So I took the $300K out of the "repairs and reserves" row and just left the total purchase price to be $1.4M ($1.1 purchase and $300K construction loan). Does this look like the correct approach? There wasn't a way to easily input in the rehab cost and make it roll into the loan. Thanks!