Hardmoney for a BRRRR

[Chris Smith]

Hi BP, I am trying to put together my first deal. I found a property and a hard money lender who is willing to fund the entire purchase with nothing out of pocket for me. I ran the BP BRRRR Calculator and the numbers seem off. I am getting a $5,775 monthly payment?

Hard Money Terms: 2yr, 4pts, 12% @ 65k or 1yr, 3pts, 12% @65k. I'm leaning towards the 1year so I can refi. 

Do most hard money lenders require monthly loan payments?

Or should I ask for interest only payments and then a balloon payment when I refinance in 12 months?

Or is this just a terrible deal in general? I'm showing $650 a month in interest which is the entire income. 

 Tenant just signed a 12-month lease @ $650 rent and has been there for 5 years. (I would consider bumping it up to $750)

Thanks for wisdom and advice!