I was looking at a deal doing some analysis including some Hard money calculations with refinancing after a year. I am 80% sure that I am doing something wrong here. I am using the BRR calculator and the numbers are high that I would need to bring to the table when compared to the Rental calculator rehab calculations.

https://www.biggerpockets.com/calculators/shared/1...

Just in case the link expires here are my numbers below.

Area: B-(possibly C)

Current Market Asking price is 262K

Tax Assessors value(2016): 230K

Property Owner: REO(Bank of America)

Previous owner purchase price and year: 232K 2002

Went into HUD: 2012 108K

Its been in winterization off market since Hud could not sell for 108K.

Offer Price:190K

Rehab price:60-80K(guesstimate)

Hard money loan is for 65% LTV including rehab costs with 3 points that is wrapped into the loan. Im not sure on the length but I guess its 1 year for the loan. (this is where its tarts to get fuzzy for me) The interest rate is 11-15% but is that over the 1 year or every month.(is that even good?) Which is 29700 or 2400 a month in holding costs(?)

Ive also spoken to a refinance loan officer who has told me they would refinance once the repairs were done(less tan a year) and they do 70%LTV.

Does this seem right? do I add the rehab costs to both the first and 2nd loans or is the terms correct or good? From my calculations it says at 190K offer I still would need 100K to the table when repairs should be including in the hard money loan? What am I missing here?

The following is some side information I want to share so if you have enough info please skip to the link.

Back then it had a hole in the roof and holes drywall in a couple of units, which has been recently fixed.

Other issues include: outdated kitchen(all 4 units), missing carpet in living room areas, rotted doors, needs repainted stucco on exterior walls and new paint interior as well, updated ceiling fans, and ceiling paint, updated Water heater and HVAC, replaced glass windows, repair door frames, overrun landscaping and trash, broken cement driveway

Unknown information: water/plumbing issues, electrical issues as it was winterized when I looked inside the home.

Upgrades I want to add include: Security lighting/system,up-to-date kitchen, update fireplace molding, paint parking areas,update all entryway door and closets, carpets to laminate flooring, examine windows and doors for gaps to reduce heat loss, if need be examine plumbing electrical and heating ducts.

Analysis:Quad plex in same neighborhood with same stucco construction and year sold 4 months prior for 232K w/ no new updates just clean livable conditions. 2 Quadplexes that are brick construction and older models but have been updated to 2015 and currently pending contracts for 315K.

What numbers am i missing. Is my term for the hard money throwing off the calculator?Is there enough meat on the bone? Too much for repairs too high for offer price? Any help or advice would be great.

https://www.biggerpockets.com/calculators/shared/1...

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