[Calc Review] Help me analyze this deal

[Donald Pierson]

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Hello all,

This is a fix and flip. I am confident the estimated ARV is strong (it may in fact be a little conservative). The $300k repair costs are based on a very recent/thorough inspection report and my GC's scope of work. The property is surrounded by multimillion dollar estates/mansions. It is located in an exclusive gated community with little to no single family home inventory left. It is also quite challenging to find land and initiate new construction.

IF we are able to renovate AND sell the property within 6 months life is good. However, I am trying to create an exit plan if we are not able to sell within 6 months. Since this is my first fix and flip financing is at a premium (see terms below). I'm fine with that because of the projected ARV.

Bridge Loan Terms

My lender will finance this loan. It will be a 6 month draw, 75% LTV, 100% reno costs covered, 12.75% rate at 3 points in cost. We can adjust to 12 month term, but this adjusts the rate up by .5%. Total loan amount not to exceed 75% ARV.

After 6 months I would like to convert the amount owed ($1.1 mil) to a conventional loan to hold and rent out the property for $6k+ per month (comps support this). However, the mortgage on $1.1 mil is $7k per month (1k more than rent), the total due at close is $264k and I only have $100k in cash for closing.

Does anyone have any other ideas for an exit strategy (plan A, B, or C) to hold me over until I can sell? Any suggestions are greatly appreciated!