Recently got Pre-Approved: Do I have the right idea?

[Gurjot Grewal]

I recently got pre-approved by a hard-money lender who works with new investors for fix-n-flip loans. I'm in the process of getting pre-approval with RBC in the US who will offer me the best LTV/rates as a Canadian buying in the US. I'm hoping to use them to refinance after the renovation. The following is my checklist.

1: Start Analyzing deals in detail 

2: Send an offer on a property that my hard money lender is willing to lend on (as long as the numbers make sense) 

3. Run this by my project/property manager who will be overseeing the renovation process and has crews in place to do the work (his opinion of the area and scope of work)

4. Get accepted, get an inspection done, and have my project manager present during the inspection 

5. Finish Rehab, go to RBC who have said they can refinance at 70% LTV, RENT

The Math : 

If I'm conservative and say I can only refinance at 65% LTV that means the cost of home/rehab needs to be 35% under ARV? For example, If the ARV is 250, 000 the cost of rehab and home needs to be 162 500 or under otherwise I'm leaving money in the deal. I understand the perfect BRRR is a rarity but this is the general idea correct?

Some Concerns: 

-RBC told me they will only refinance on ARV 1 year after the rehab, is there any way to work around this?

-I need to consider costs such as: property tax, insurance, interest, loan processing fees, lender fees, closing costs, commissions, rehab, and project management fees, all up until it's rented. Is there anything else that I am missing? ***

-Any other advice at all on BRRRing from a distance, and ways to mitigate risk? 

This forum has been extremely helpful for someone like me who is brand new to this game. I'm very excited to even have the opportunity to do what I'm trying to do. This first one will be a learning experience is how I'm approaching it, thank you to everyone who is able to reply and offer some advice.