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[Calc Review] Help me analyze this deal. Did I do it right?
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I am not sure how to get the hard money loan into the first loan. The hard money lender is financing 100% of the rehab costs. My down payment and out of pocket rehab is only $28,000. I think that makes a huge change to my cash on cash right?
#3 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#3 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Clinton Cook, yes if you are actually financing 100% of rehab, then your cash on cash, pre refi will be much higher %, but your calculated interest expense is also going to be higher.
Beyond that, you need to make sure you are able to cash flow after the refi. So, assuming your insurance and tax numbers are based on actual quotes and not estimates, I would be careful on your Capex reserves. If this is a 5 yr or less hold, they might be fine after rehab, but if you plan on holding long term, you are under reserving.
