Analyze my first potential BRRRR deal

[Slaiman Atayee]

I posted this in the BRRRR section but didn't get much traction, so thought i'd try my luck here.

Details of my first potential BRRRR deal are below, with specific numbers given by my private lender and bank for refi. The rental numbers come out to roughly 1.08 DSCR, but really in this for the principal paydown, tax benefits, and property appreciation. Got 3.4% total closing costs (including origination), which I believe is really good in the current cash out refi market (hearing 6-8% in other parts of the country).

Let me know what you think and if i missed anything. Thanks!

Inputs
Purchase Price	100,000.00
Rehab	17,500.00
ARV (Refinance)	160,000.00
Project Length (Months)	2
Interest Rate	14%
Total Points	2
Loan Down Payment	20%
Advance on Purchase + Rehab	100%
Closing Costs % (of ARV)	3.44%
Annual Property Tax	2,000.00
Refinance LTV	75%
Loan Costs
Purchase + Rehab Loan-Down Payment	97,500.00
Interest	2,275.00
Points	1,950.00
Total Loan Costs	101,725.00
Closing Costs on Refinance	5,500.00 (3.4%)
Refinance Loan (@ 75% LTV of ARV)	120,000.00
Other Project Costs (Closing costs + prop taxes)	5,833.33
Loan Payback	101,725.00
Total Cash Back	24,108.33
Less Down Payment Paid on Loan	(20,000.00)
Net Cash	4,108.33
Down Payment	20,000.00
Interest + Points + Taxes	4,558.33
Rehab (Advance before lender inspection and draw)	11,666.67
Gross Cash Required (although will get some rehab back immediately)	36,225.00
Cash on Cash	21%