Looking at another BRRRR, Your thoughts?

[Jerod Smith]

Still haven't pulled the trigger on a BRRRR deal yet. Trying to be patient and seems like all the properties I look at have a major thing that scares me off.

BUT...through the help of my Realtor, I've found a 3/1.5, 1075sf, brick, 2 car garage in an area that brings an ARV of $90k.

Asking price:  $69k.

Rehab would include (not limited to):  

• Refinishing wood floors in Living room and hallways.
• Carpet in bedrooms.
• Tile, Counter tops, paint cabinets in Kitchen.
• Paint interior
• Tile, sink, vanity bathroom (maybe more).
• *All other systems and structures seem to be in good order.

Estimated rehab:  $20k

Lending:

• Hard money for initial purchase at 12.75%.  (Fee is 1% of loan and 1% payoff penalty inside one year).  
• Refi at 80% of after rehab appraisal.  15 years at current rates.

Rent potential:  $900 (neighborhood brings $850 for non remodeled properties).  Mortgage plus tax and insurance should put me around $750.  Net= $150 (not counting vacancy, capex etc.)

Further details:

• $72k= loan amount of 80% of ARV.
• $20k= rehab cost.
• $2500= est closing costs (incl. refi).
• $400= bank appraisal

QUESTIONS:

• My offer should be $49,100 in order to cash out, correct?
• I have a 790 credit score with cash assets of $48k. The rehab money comes from this cash. With my credit score and cash, should I be expecting a way better hard money deal than 12.75%? I've never used this type of loan so I'm not sure if this is normal or highway robbery. If yes, where do I look for a better HML?
• Is my rental net too low?
• What other advice would you seasoned professionals give me about this deal?

Thanks in advance!

Jerod