First time investor calculating ROI

[Michael Davis]

Forewarning I may be over complicating things.

At this point I'm simply theorizing, I have yet to see the property in question. I had someone reach out to me to see if I was interested in buying a property delinquent on taxes.

I would be leveraging around $100k in a HELOC to buy my first BRRRR.

Theroy:

Buy the house at $50k

Invest $40-45k on the rehab

Rent the house for $1200/month

70% LTV would be $84,000 if the property can appraise for $120,000

Left in the deal $6000

I tried to use a ROI calculator and also tried to do it by hand but I'm missing something.

What would be the ROI for this property?

Feel free to comment or DM me