Hard money then refi cashout in 6 months

[Brett Hearn]

Hi everyone,

So this is my first deal and I'm doing my best not to get cold feet. I plan to purchase the property using hard money at $77K then put about 3 months of work into it spending about $5K. Property is currently under contract. I will be doing most of the work myself and if I run into a snag I will delegate appropriately. I then plan to refi in 6 months into a conventional loan hopefully achieve an ARV of $115. I plan to rent the property for $850, at the 3 month mark. I have budgeted for the reno accordingly, but my only concern is the kitchen. It is not in bad shape but is it worth the cost benefit of chasing the ARV by putting new cabinets and a new table top? The current cabinets could be refinished and the tile grout could be scrubbed and redone. the sink is stainless steal that would just need a little water sealant around the edges. I could refinish the ones I have and get a renter in there no problem but I'm thinking that I need to act like I would be selling the property in 6 months if I really want that cash out refi, which at 70% of the ARV would be 80500, or more if the ARV is higher. Plus, is the extra work and capital worth putting in the cabinets if it is not going to make that much of a difference when I do the refi?. Much of my work will go towards the curb appeal which my dad an I will be able to handle. The property is in a C+ to B- area. A property down the street with the same sq footage sold for $130K. The only difference is it has a backyard, and of course they upgraded almost everything. I looked at the pictures of the inside on zillow and it seems to be the same age home as well, older home, but they defiantly upgraded the kitchen. Any kind of advice on if the cost benefit is worth putting in the cabinets would be greatly appreciated. See link below.

https://www.biggerpockets.com/calculators/shared/605051/a8e239aa-ed65-4bda-82ec-b47b6a35702d

If you can not see link please let me know. 

[Brett Hearn]

Hey @Ron Flatt thank you so much for advise.  My partner and I are having the debate on if we are going to take them all out or just do the table top like you said.  It's only 10 ft across for the cabinets so if we were to screw it up, in the big scheme of things, this is the project to do it on.  She actually has a pretty good price of $1100 for tops, table top, and lowers.  Perhaps we can must meet in the middle and do just the table top and refinish the rest.  It would look a little odd with all new laminate flooring and old yellow tile table top, ahaha.  Anyway, thank you so much once again and I'll do my best to keep you updated.  Perhaps I will be posting on the success story page in about a year.