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Updated about 8 years ago, 10/06/2016
First BRRRR deal - need advice
Haven't purchased yet, I'm about to go view the property soon (so rehab is estimated from pics), just wanted to share the prelim numbers so i can get some feedback. Let me know what you guys think!
Purchase data:
Asking price: $85,000
My offer price: $73,500
ARV: (per Redfin sold data) ±$110,000
Rehab: guessing around $10,000
Closing/inspection, etc: $650 (i have no clue on this number)
Holding Costs: $1,147 assuming about 2 months for rehab
Cash Purchase - all in for $85,297
Income data:
Rent: $1,050 per month (from zillow area rent data)
Expenses (monthly):
HOA: $17
Insurance: $60
Taxes: $166.67
Vacancy: $52.50
Repairs/maint: $52.50
CapEx: $105.00
Property Management: $105.00
Total: $558.67
NOI: $491.33 ($5,896 annual)
Refinance:
LTV: 75% of ARV
Loan amount: $82,500 @3.75% for 30 years (estimated)
Payment: $382.07
Refi fees: $2,500 (assumed)
Total cash invested post refi: $5,297.33 ( I'm not sure if i calculated this number correctly, any input would help me greatly!!)
Cash flow:
Post refi: $109.26 ($1,311.16 annually)
Cash on Cash post refi: 24.8%
I do plan to get an agent to help me with CMA's, but these are preliminary
Now...
There is a child support lien for about $25,000 against the man (whose address is shown as this property on the lien), but i cant find where he is an owner of the house (only the woman's name appears in the public record)...so does this lien affect this property?? The lien says that it attaches to all personal and real property of the obligor (the man)...but again to me it doesnt appear he has any ownership of this property.
THANKS!!