first deal analysis

[Justin Lowe]

Hello,
I have been in the forum for awhile, but am just now jumping in.
I want to list the details of my deal for everyone to critique. Any help or advice is greatly appreciated. As im sure i am or will make mistakes. Just hope i've given myself enough cushion for them.
Anyway details as follows:

2bed/1bath 1100 sq ft (as of now)SFH.
Im making bid for 50,000 w/22,000 in improvement costs. Original price was 79000, but realtor called me same night to say seller would take 69000.
House is in a nice area and good school district. Previous owner must have been meaning to remodel basement, as it is totally gutted.Master bedroom was also previously 2 rooms, but they removed wall. I think I will get more value in 3 bed rather than 2 bed.
Once fixed up and remodeled, it will be a 3bed/2bath 1712 sq ft.

Major improvements include; replaceing interior doors and two entry doors, flooring thoughout house (carpet/tile), ceiling light/fan fixtures,basement(all), new electrical panel,countertops, windows, and paint. It also has an outside pool that is concrete and I plan to resurface and repaint. I have alloted money for pool at 2000 for pool/pump/filter.

I am using a hard money lender for financing details as follow:
Gross Loan Amount: $93,445.50 (closing costs included)
Net Loan Amount: $90,000.00
Loan Term: 3 Years
Amortization Type: Interest Only
Interest Rate: 11.500%
Estimated Payment: $862.50
Buy down Option: 8.500%
Buydown Payment: $637.50
Buy down Costs: Add 1.5% to lender fee
Prepayment Penalties: N/A
Lender Fee: 2% of net (us)
Underwriting Costs: $950.00, due at submission of signed offer

The details will change a little based on end negotiated deal.

I have looked all over the web for ARV, and I am relativley certain that I will be asking 135000, expecting to get 120-125000.

I know I am probably leaving something out, so please ask and I will follow up asap.

Thank you in advance for helping out a new investor!

[Will Barnard]

Justin,
A few questions for you:
You state that your offer is $50k and rehab is $22k for a total of $72k, yet your loan amount shows $90k, why the extra and who will fund more than 100% of acquisition plus rehab?

Based on the numbers you provided, an all-in cost (acquisition of $50k plus rehab of $22k) is $72k which is 58% of the ARV (the low end you stated) which makes for an extremely good deal if the numbers are what you stated.

I would also add that $22k for the work you mentioned seems low to me unless you are working with very low end items. What about landscaping costs, drywall, plumbing fixtures, bathroom vanities, etc? How are the mechanicals, roof, foundation, water heater, etc.?