BURRR Strategy on Single Family Deal. $0 out of pocket

[Account Closed]

Hello BP. 

I just a single Family deal under contract from Wholesaler. My plan is I am going to use Hard Money lender for first financing to buy and  rehab. After I get it rent out, I will refinance to 30 year traditional mortgage. Here is the detail and you guy can let me know if it is DEAL or NO DEAL. 

Buy it for $82000

Rehab will be at $10900

SubTotal : $92900 

Plus Hard Money Fee 4 Point and Closing : $7800

Total : $100700. 

The Rent will be $1150 per Month. 

The ARV will be $140000 

so when I going to refinance, they will do 75% of ARV = $105000

After Everything : New Loan $105000-100700- Closing cost = Around $0 Out of pocket.

Payment for New loan is $105000 and $2700 Tax and $1200 Insurance = $888.36. 

Monthy cashflow is : $1150-888.36= 261.34 

Is it good DEAL ? 

[Brent Coombs]

@Account Closed, are you sure your hard money repayments, plus insurance, plus taxes, PLUS vacancy allowance, plus SOME unexpected expenses that will be inevitable, will only total $888/m?

That, plus having to wait a year or even six months for refi re-appraisal, will in my opinion NOT give you the $0 out of pocket you are looking for. But, all the best...