Hard Money Loan Question

[Michael W.]

Hello!

Just want to make sure I am understanding this correctly.

I am currently looking at a commercial property to buy/renovate and lease out. I can't do conventional loans because I need two consecutive years of tax returns. My idea is to get hard money loan, buy the place, renovate it and then refi for a normal 30yr mortgage as soon as possible. 

My question is, this new loan will pay off (or should) the hard money loan, but how is the cost incurred during this 1-2yr time even worth it based on a ROI stand point? For example. I take out 800k, pay $5,800/mo for 24 months, renovate, get a tenant in there and refi. I will have spent 140k in just mortgage payments. In an ideal situation, does the refi help you recover those costs?

Thanks for your help.

[Christopher Phillips]

@Michael W.

most hard money situations are for 6-8. Taking one out for 2 years is asking for trouble.

What kind of property is this? Store retail?