Originally posted by @Casey Christensen:
Originally posted by @Rob Sawyer:
@Casey Christensen Hey Casey, I'm still relatively new but as I see it, you're now into the property for $200K and as you're only about halfway thru your rehab, I suspect you'll be into it for close to $300K by the time it's rent ready . If you can only get ~ $2200/mo revenue, how will it cashflow? Also if you're going in to it for close to $300K and the projected ARV is only high $200s, how will you recoup all of your investment on a refi with a 75-80% LTV?
Not trying to detract from your efforts, just trying understand the numbers. Is it a highly appreciating area?
Hey Rob - Thanks for bringing this up. I probably wasnt clear in my description. I will be $200K all-in once renovation is completed. At this point I am only about $105K in total cash and we are about half way through the renovation. So if ARV is $250K and I am all-in at $200K I will be able to pull out about $185K and will still have roughly $15K in the deal. my PITI will be roughly $900/month and with other expenses probably around $1400/month total outflow and with bringing in $2,200 I will cash flow about $800/month. There is still risk that the appraisal wont come in that high and that I wont get that much in rent as it wont be done until November. But from my perspective even if I only cash flow $3-400/month and get 85% of my money back it is totally worth it as I am learning a ton and getting experience. Let me know if that answers your questions or no
@Casey Christensen - total newbie question here, but when you finish the reno, how will you go about getting the property reappraised? Do you tell the bank and go with their own appraisal company or do you schedule an appraisal independently and then pass the appraisal report to the bank you are refinancing through?
(PS - what do I have to do to get @ mentions working in here?)
