HML analysis

[Pat Saunders]

Hey BP! My name is Pat. I've been a member for a while and have recently decided to take some action and acquire my first buy and hold property.

The home is in an Atlanta suburb and asking price is 85K. My agent states there is no true ARV for the neighborhood, therefore, we have to work off "as-is" value of 113K-120K. I know I need to purchase home at about 65K-70K of the ARV but I'm not sure what that is. I estimate repairs conservatively at about 25K.

I've reached out to some HML's and received my first approval. I welcome the opinion of other RE investors who have used HML's and help me analyze whether this is a common offer for a newbie investor as well as how I could possibly make it work? The offer I received below:

Loan Balance: $105,000.00
Loan Interest Rate: 5.00%
Loan Term: 1 year
Monthly Loan Payment: $8,988.79
Number of Payments: 12
Cumulative Payments: $107,865.43
Total Interest Paid: $2,865.43

Note: The monthly loan payment was calculated at 11 payments of $8,988.79 plus a final payment of $8,988.74.

Thanks in advance,

Pat