All Forum Posts by: Dave Smith

I'm hung up on my analysis on this very thing. 

Let's say I'll spend 6 months rehabbing a property, get it reented, then after 6 months seasoning refi out. If my interest only payments to my Private Money Lender are approx $1000/month, do I account for them as holding costs (x 12 months) AND plug them in to my monthly expenses (as debt service) for figuring COC (including financing)?

Or do I consider them as holding costs only (from my reserves), thereby NOT consider them debt service, particularly since I intend to refi out and repay my Private Lender after 6 mo?

That aggregate $12,000 goes somewhere - either as an out-of-pocket holding cost (on the balance sheet), or on my monthly expenses as debt service subtracted from NOI (P&L).

If the question seem ambiguous, that's because it is to me too.

Thank you folks.

@Dan Krupa Thank you, Dan!

@Larry Fried I'll give them a try, Thank you Larry.

@Mike D'Arrigo Thank you, Mike!

@Rich Kniss, @Andrew Syrios Thank you!

@Matt Clark Thank you, Matt, I'll check them out.

Can anyone recommend Insurers in the Kansas City area, for properties that are vacant, and/or under rehab?  Will they also cover rentals?

Thank you.

Weekdays after 5pm are good for me.

@Jonathan Schneider , @Tiffany Smith Either of you still interested in meeting up?

Thank you, Aaron.  Is it commonly difficult to get a refi on a low value property like this because banks don't want to loan small amounts?