BRRRR questions

[Adam Schellhammer]

Good day BP community,

I am interested in completing my first BRRRR deal, but I am uncertain on a couple of things so I will lay out the scenario below. House is appraised for 290k purchase price sjhould come in at 190k. 40k for rehab costs. I can rent both units for $2,500/month (total).

Has anyone used hard money loans for the cash source?  These are the hard money terms:

Loan Balance:$240,000.00

Loan Interest Rate:4.00%

Loan Term:2 years

Monthly Loan Payment:$440.33

Number of Payments:24

Cumulative Payments:$250,127.55

Total Interest Paid:$10,127.55

Note: The monthly loan payment was calculated at 23 payments of $440.33 plus a final payment of $240,000.00

Also, how can I guarantee that I can refinance after 2 years to a conventional mortgage? Or is that the risk side? Thanks BP community, just trying to figure out this BRRRR method and if it would help me with this deal.