Is this a good deal to get involved with?

[Kamyar Farhang]

I was approached by a fellow REI member regarding the following deal. I was to put $40,000 into the deal with 8% return.

Our exit strategy is to turn it into an Airbnb rental. We have a Superhost who already looked at the property's potential and gave us a thumbs-up. We will refi and pay off you and our Hard Money Lender after we have stabilized the property. We will close on 10/1/2018. Below are the details of the loan request. Let me know if you or someone you know might be interested.

Loan Requested:

• $40,000 (secured by a second deed of trust)
• Interest Only Rate: 8%
• Total Loan to ARV (After Repair Value): 76%
• Loan Length: 6 Months
• Monthly Payments: $267
• Total Interest Paid Up to 6 Months: $1,600 (plus the principle of $40k back then; if money returned earlier, it'll be however many months the money is out)

Is this a good deal?