Rehab Price Excluded From Loan??

[Chuka Eko]

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How do you include the rehab cost in the loan amount? The expectation is the loan is supposed to be for the purchase and rehab price.

[Greg Kasmer]

Chucka - Are you staying you can't change the "loan amount" above the purchase price? I would add the rehab into the loan amount if you can. If not, I would increase the purchase price to include the purchase and renovation amount and then set your loan amount to that new number. Also, on your post refinance I would be sure to include: maintenance/repairs, vacancy, and management fees (if your'e using a 3rd party management company) to make sure you have the most accurate expenses. Lastly, I would adjust your interest rate on the loan, 4% looks very low to me - probably closer to 7% on the refinance loan interest rate. Good Luck!