Brrrr financing options

[James Krell]

My partner and I are doing our first brrrr. Here’s the numbers

PP 150,000

Hard money loan-135k

Repairs-15k

Signed lease of $1650 per month.

ARV 220k

My hard money lender offers two loans that keep the property in the Llc.

Option 1 80% new appraised value 30 year fixed

5% apr

Option 2 10/1 arm. 5% Interest only for 10 years and then libor + 5.

I’m torn between cash flow and paying down the asset.

Curious to see what you guys think.