All Forum Posts by: Mariano Coccoz

Howdy @Mariano Coccoz

Congratulations on closing on your deal.  

Try to keep searching for local banks or credit unions (portfolio lenders).  They should be able to provide 30 year term/ fixed rate mortgage.

As far as your report I am surprised at how much you are paying for Closing costs.  $15K for a $131K Purchase seems extremely high.  Is that normal in your area?  The $7K Closing costs/ Fee for the Refinance is also high.  I hope you considered these costs in your initial All-in Cost Analysis.

Did you include Holding Costs in your Rehab numbers?

As far as the Cash Flow it looks a little too optimistic to me. 5% Vacancy, 8% PM, and no CapEx reserves. I never go below 8.34% (one month rent) for Vacancy reserves in my analysis and budgeting. If I had less for than that, great, I made more money that year. If you have a Vacancy for a month or more you've already blown your 5% budget. You say you are managing the property now. Do you anticipate having a PM Service in the future? If so I would use at least 10%. Did you intentionally leave out CapEx? Nothing lasts forever. You still need to have reserves to cover those eventual costs. 5% to 8% depending on the current condition and life expectancy.

Good luck.  Keep moving forward.

Hi Mariano...I am looking for a gap funder. $40k