Greenville SC - Buy - Rehab - Rent

[David Miller]

BP squad, here's what I'm looking at: 

nice looking 3/1 brick ranch a right turn away from thriving Augusta Rd in Greenville, SC. 

30K purchase price 

ARV of 75K (most pessimistic scenario)

15K of rehab costs (pessimistic scenario)

Hard Money Loan (HML) terms:

• 10% down ($4,500)
• $3,500 origination fee 
• interest only loan at 10% for 13 months - ~$400 per month x 13 month  = $5200 max holding costs - goal to have property rehabbed and refinanced in 120 days
• no prepayment penalty
• total cash needed to get into deal: $8k 

expected rent: $1000 / month

goal is to hold onto the property for the long term and have a property that cash flows as area continues to appreciate. 

my only other deal so far is a rehab / rental that i purchased through a combination of cash out refinancing the down payment and having the seller hold the note. 

i've never dealt with HML so any advice you have would be greatly appreciated.

thx!