Calculating Rehab Costs, Taxes & Insurance Using 4 square method

[Andrea Sealey]

Firstly: Can one typically get traditional bank loans that include the expected costs to fix the property? What financing routes are best if the investor doesn't have the rehab cash on hand? If one is able to obtain a loan that includes rehab costs, should the mortgage number include that when the monthly mortgage expense is calculated? Should the cost to rehab also be included in the rehab cost line in the cash on cash return box? 

Secondly: What if the tax and insurance is included in the mortgage? I'm using the calculator on realtor.com and the calculator assumes these are baked in to the monthly mortgage number. Anyone who can help provide clarity, it would be much appreciated!

[Scott D Burrows]

@Andrea Sealey

First Question: You are going to want to do a homestyle loan. 

I have worked with @Diana Muresan and she can help you with this, she's licensed in all 50 states. 

Second Question: Just use Google and type in mortgage calculator. A basic calculator will pop-up, go ahead and plug in your total loan amount and an amount for just interest and principal payment should show up. 

Again, good lenders on this topic would be @Chris Mason   (if in California)  @Andrew Postell (if you are in Texas)

Good Luck with Everything,

Scott