purchase for 195k ...conventional 2 yr arm at 10%.... 20k in repairs....ARV is 260k ...I am a residential contractor so I will be doing the work.....appraised at 250 now....probably 280 to 300 after repairs depending on my detail input.

every investor has different exit stragegy....if its long term... you want it to be fixed maybe 30 years or 40 yearsif its a quick rehab maybe ARM short termif its a quick wholesale flip...i use hard money...

Market value is the arms legth price that a buyer and seller agree upon.Vacancy rate you need to figure at least 10% and thats conservativeWhere does your service and other income come from?

When others culled thosesprawling farmsAnd welcomed deals with open arms . . .A corner here, ten acres there,Compounding values year by year,I chose to think and as I thought,They bought the deals I should haveThe golden chances I had thenAre lost and will not come again.Today I cannot be enticedFor everything’s so overpriced.The deals of yesteryear are dead;The market’s soft—and so’s my head.Last night I had a fearful dream,I know I wakened with a scream:Some Indians approached my bed—For trinkets on the barrelhead(In dollar bills worth twenty-fourAnd nothing less and nothing more)They’d sell Manhattan Isle to me.The most I’d go was twenty-three.The redmen scowled: “Not on a bet!”

You might consider using an option arm for this idea.

The people bought on a 100% with an ARM the rate has bumped and now they can not make the payment and the don't have the equity to refi.

As the year winds to a close, mortgage rates have shown a marginal increase with the rise being most apparent in 30-year FRMs and 5/1 Hybrid ARMs.

we are trying to decide if it is worth refinancing since we are on a arm that has just applied as of Nov 2006 rate has gone up to 10.5 from 7.5%.It cannot go any higher than 13.5 % .

The 5/1 ARM for the same period closed at 6.18%.On the economic front, growth is being sustained at average levels with inflation showing a gradual downward trend.

You didnt mention if the terms you posted were on a fixed or arm?