Potential First Deal. What am I missing here? BRRRR.

[Account Closed]

So, there is a duplex for sale near me that is listed for $485k. 100 years old and need of updating and rehab. I'm estimating about $75k in repairs (which will be financed through the HML). I'd use a HML and then cash out refi. I'm initially looking to house hack but these rent roll numbers are assuming once I move out and keep the property. I feel like something is off with the numbers using the Bigger Pockets Calc.

Can someone give me advice on this deal? Thanks so much. 

Jesse 

[David M.]

@Account Closed

What looks or feels off?

I don't use the calculator. But, I don't like the "total cash needed at purchase" $173k. I get it since it includes the repair costs. However, you said the HML will cover that, although I am not sure what percentage.

I see you are doing a 70% ltv for the refi. Of course, you aren't going to be pulling your starting money out... But, I suppose that's the problem. For the sake of argument lets say the HML covers 100% of the reno. Your refi has to cover the initial $360k acquisition loan plus the $75k reno, totaling $435k. However, your refi is for $402k. You need to come up with another $33k (plus all the various associated closing costs, etc blah blah blah).

I'm swapping between windows here, but that's what I see on first pass.  Does that make sense?  Did I miss something?  I'd be happy to chat.  Good luck.