Deal Analysis 1156 Magdalyn Drive Akron, Ohio

[Ryan James]

Does anyone have some prudence to lend on this deal? 

I have a property (1156 Magdalyn Drive, Akron Ohio) under contract for $123,000.00. Unfortunately, there's a squatter in the property and no appraisal is possible. I've offered up to $2,500.00 to the squatter to allow an appraiser in the property and it doesn't appear this will happen. With the hard money willing to lend on a BPO with no appraisal, I'm looking at 3 Points to close, 30% down and 1% interest per month or 12% per year. As this property was purchased at an auction, there's 4 months holding time (2 months to get the deed and 2 months to evict the tenant). Buy and hold isn't really an option for me as the rent in this area is only $1,150.00. The property is 3 bedrooms 1.5 baths and 1,500 sq feet built in 1967 in a desirable school district.

$215,000.00 ARV

$123,000.00 Purchase

Rehab Unknown (Exterior looks great tenant told me the bathrooms and kitchen are dated 1970's)

$3,444.00 Holding Cost (Minimum 4 Months)

$36,900.00 Down Payment (30%)

12 % Interest

I could walk away and leave a $5,000 deposit or maybe wholesale the deal to a buy and hold investor. I was super excited about this deal before the 4 months holding and steep hard money; now I'm feeling a little jaded. With $42,927 out of pocket for 4 months does anyone have some ideas moving forward?