I need advice on a deal i found in Texas

[Mauricio Ramos]

Hello, i am an investor (newbe) and would like to get some advice on a deal i found in TX from a wholesaler as follows

Contract Purchase price: $10,000 (wholesale fee plus reinstatement fee)

ARV: $106,000

Repairs: $40,000

Property current payoff balance $85,000 ($800/mo)

Rents in the area go for $1,250

My idea is to BRRR basically. Buy it and rehab it with a loan, rent it and refi after about a year. Any advice? Anything that i might be missing or should look at? Any suggestions?

Thank you,

Mauricio Ramos

[Ralph R.]

Mauricio Ramos Are you saying you want to pay $10000 + $85000+$40000 for a property that has an After Rehab Value (ARV) of $106000?? If so when you are done you will have $135000 in a property that's only worth $106,000!! If I understand that right you will never find a lender to loan you more money than the property is worth. RR