Help Me Anylize My Brrrr Deal

[Devin Stott]

Hi Guys,

I would love some advice. This is my first BRRRR or semi-BRRRR deal and I'm hoping you can give me some good advice! Here are some of the details:

Non-conforming duplex currently rented top and bottom

List Price: $199,000

ARV: $285,000 - $325,000 I'm going with for $285k for extra buffer

I estimating repairs at $50k and 6 months

Rent should be $1900+

Property Tax $115.00 /month

Maintenance Costs 10% $190.00

Vacancy 5% $95.00

Insurance $60.00

Other Utilities $50

mortgage payment on $228k (80% of $285k) around $1168

Cash flow (rent - mortgage - other costs) 1900 - 1168 - 460 = $221

Cash on Cash should be around 10%

I have $30k cash and $30k in a HELOC and could probably get more

If I use a hard money loan and then refi at 80% LTV, after 6-8 months (is there the 1 year waiting period with a hard money lone?) then I'll have $22k plus closing costs left in the deal.

I could also get a traditional mortgage and refi after a year but would need more money upfront for a 20% down payment and repair costs.

What are your thoughts?  Do you have any experience with different financing options?  What is the preferred financing method?  What am I missing?

Thanks in advance!!!

Devin