All Forum Posts by: Bria LaShee

I believe the FMR (Fair Market Rent) tables for section 8 include all utilities. So, they may not approve $1700 rent if that is the table you're looking at unless you are including all utilities which I don't recommend for a single family.

Is the $1,700 you listed for rent based on the FMR for 3 bedroom units in the county the property is located? I see a reference to Philadelphia, but I'm not sure if that's where your property is.

It sounds like an okay deal, but a few factors to consider with the Philly market:

1. Location and Rentability: Philly’s rental market can vary widely depending on the neighborhood, and even the block that it's on. Make sure the expected $1,700 rent aligns with similar properties in your specific area. Vacancy rates and tenant demand are key, so researching current market trends in that neighborhood will give you a clearer picture.
2. Rehab and ARV: A $25,000 rehab estimate is reasonable, but make sure you have a detailed and reliable quote from a contractor. The quality of the rehab can significantly impact your ability to refinance and secure the projected ARV of $220,000.
3. Hard Money Loan Fees: 3.3 points on the hard money loan is on the higher side, and that upfront cost could eat into your cash flow. Make sure you account for all closing costs and holding expenses, as these can add up quickly.
4. Cash Flow After Refinance: Once the rehab is done and you refinance into the DSCR loan, ensure your monthly expenses, including mortgage and property management fees, allow for positive cash flow at the expected rent. If rent doesn't come in as projected or takes longer to secure, it could affect your profitability.

If you’re comfortable with these factors and confident in your numbers, it could work well. Keep an eye on the rehab costs and local rent comps to make sure everything aligns.

@Bria LaShee

yep - right here.  paste the numbers into this post.  or ask any general questions you have.