Check My Numbers - Are you in?

[Joe Podwats]

Hi, I'm considering buying a bank owned property in Pennsylvania to use as a rental. From what I see, I would need to submit a very low offer to make the numbers work using a hard money lender. At 65% of asking price, here's what I come up with. Would anyone be interested in sharing whether they would pull the trigger or have any suggestions?

Asking Price: $215,000

Offer: $139,750

Purchase Loan Amount: $125,775

Rehab: $10,000 (or less)

ARV: $215,000

Potential Rent: $1,349

Monthly Management: $108

Monthly Taxes: $330

Monthly Repairs, Maintenance, Vacancy, Cap Ex: $188

The monthly mortgage is estimated to be $1,069 for 12 Months at 9.45%.  

No HOA, very very low crime, and schools are rated 5-7/10.

Thanks everyone!
















































Est. FICO Score720-739










RefinanceNo

Purchase PricePurchase Loan AmountYou qualify for a loan between$65,000 to $125,700.Property RehabYes

Estimated Cost of RehabAfter Repair Value (ARV)Loan-to-cost is 90%.After-repair loan-to-value is 63.15%.Total Loan Amount: $135,775Rates have been calculated