Help! What type of refi do I use for BRRRR?

[Robin Tan]

This is my first BRRRR project and am not sure if I'm getting a great deal on my hard money loan. I'm also confused as to what type of refi structure I should go with? I read on Bigger Pockets that finding a lender to refi is something that should be done right away once funding is approved. I'm looking to refi and cash out on the difference of the appraisers ARV.

 Below are the terms the hard money lender is offering. Can someone tell me if it's a decent deal?

• -Amount $146,000.00 ($136,000.00 Purchase Funds + $10,000.00 Rehab Holdback)-Terms Two months
  
• -Rate: 12%
  -Fees: $3,920.00 Total Fees. 2% Origination Fee, $500.00 Loan Processing Fee, plus all reasonable closing costs, including but not limited to appraisals, title work, legal, etc and the $250.00 doc prep fee.. The Desktop Appraisal worth $250.00 is going to be added to the fees on this Term Sheet.
  
  
• -Payment Schedule to Lender: $1,460.00 interest payment due the 10th of each month until maturity of loan or sale of property. Principle and all remaining interest due upon maturity of loan.
  
  
• -Payment Schedule to Borrower: Purchase Funds of $136,000.00. Total Rehab Holdback of
  $10,000.00 to be released as work is completed.
  
  
• -Contingencies: This loan approval is contingent on a Post-Closing Desktop Appraisal.
  
  
• -Late Charge: $120 if payment not received by the due date, then an addition $50 per day until payment is received.
  
  
• -Loan may be extended for an additional 1 month with 1 point paid provided that the loan, insurance, and taxes are current. Loans cannot be extended past 12 months. An onsite inspection is also required for any loan extension.
  
  
• -Collateral: 1st Deed of Trust and Assignment of Rents and Leases on the property located at __"property"__ . __"lender"___ will lend up to the lesser of 85% of Cost (purchase price) or 65% of Market Value, not to exceed $146,000.00.
  
  
• -Interest Rate Adjustment: The interest rate payable on this Note will be subject to adjustment from time to time in the event "lender" deems it necessary or prudent.
  
  
• The above terms are not all inclusive and any final commitment and documentation would include other such conditions that are customary for similar transactions.