Deal to evaluate

[Ginny Watson]

Hi there, please weigh in on this deal. I need some reality checks on my assumptions. I would like to evaluate the deal from a buy and hold perspective.

Attached 3/2/1 vacant townhouse built in 1980. Near my house, huge yard, backs up to power lines.

REO foreclosed in March for 178,000
Zillow says it's worth 191,000
$110,000 cash offer
$20,000 repairs and updates
$130,000 /hard money loan
$4,000 closing costs/me
$150,000 conventional refi
$145,000 repay hard money loan (how many days is the norm and what kind of return to lenders expect?)
$5,000 cash from refi to recoup closing costs

Rent the property for $1250 or $1300. It may not cash flow but I have maintenance, property management (which I will do for 2 years), vacancy, and utilities all figured in to my expenses. Might even cost me a little each year until rents increase and I can sell it.

If you can get into a property using OPM, what is the cash flow rule? This is Oregon and cash flow is not easy to get to

Thanks.