[Calc Review] Help me analyze this deal

[Ryan Ward]

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I will be purchasing this property using a hard money loan that provides 90% of purchase +rehab cost. The cash flow using the 50% rule is negative but I am $0 out of pocket on this deal after the refinance. Am I calculating the acquisition correctly given that I will need $8,000 down plus $4,500closing cost? It's not clear because I am using the HML. Please advise!

[Jason L.]

Originally posted by @JoJo Tucker:

@Jason L. "I'm still budgeting for around $1/SF or $1000 (whichever is higher) of annual maintenance". 

Does this include CapEx costs?

For budgeting purposes I generally consider it to be the same category, yes, but my threshold also depends on how much work I did up front. Fortunately (unfortunately?) all of my houses required a lot of rehab up front, so the need for future Capex was low and I've been way under budget every year since. To answer your question though, on an older property that I was just trying to live out as much as possible I'd probably start looking more at $1.25/SF.