[Calc Review] Help me analyze this deal- Total Cash Flow invested
*This link comes directly from our calculators, based on information input by the member who posted.
I am a bit confused as to how the total cash invested is calculated , my numbers arent the same as that in the calculator:
TOTAL CASH REQUIRED AT AQUISITION
Purchase price: 70000
Repair cost: 30000
ARV: 120000
Hard money loan(75% of arv): 90000
Points on loan: 2700
Closing cost:2500
Total needed at aquisition: (70000+30000-90000)+2500=12500; the same as the calculator but arent the points paid on a hard money loan paid upfront? the calculator adds the loan points to the total loan so you pay interest on the loan and the points.
TOTAL CASH AT REQUIRED AT REFINANCE
Months to refinance: 6 months
Rehab duration: 3 months
total interest paid to hard money: ((11.99% x 92700)/12)* 6 = $926.3* 6= 5557.4
closing cost: 2500
Refinance loan(70% of arv): 84000
Total cash invested= (Total amount needed at aquisition)+ (closing cost,refinance)+(total interest paid to hard money) + (difference between hard money loan and bank loan)
= 12500 + 2500+ 5557.4+ (92700-84000)= $29257.4; the calculator states I have to pay $23700. Im not sure where i went wrong in this but it makes sense that I have to pay the the difference between hard money and bank loan.