I have a saying, maybe I stole it from some other smart sage, can't remember, but: "An ounce of action is worth a pound of theory".

Is this deal worth it?

The rehab estimate seems very low and the ARV seems really high in my opinion, just based on a tiny bit of research looking at what this property was listed for recently (it hasn’t sold), and what the surrounding similar properties are worth (~$250k).

Depending on the cash flow and your FICO, you should be looking at 75% or 80% (80% will have a significantly higher rate than the 75% but depending on your strategy could be worth looking at) of the new as-is value that you can get to pay off the rehab loan and get some cash back to go after your next property.I'd recommend looking at some of the BRRRR articles that have been written in the BP forums for some additional info on this process.

They have almost 6 months worth of rent in savings, but their house they are selling looks like it is paid for, and estimated at $450-$500k value (redfin and the county appraisal).

It may be worth trying to get more 'tenant access/compliant' money and just taking care of the encroachments yourself.

definitely pretty common among Hard Money Lenders - just have to have a strong valuation team and expertise Yeah I can't remember the last time I had to get an appraisal on a hard money loan.  

Today it would probably be worth more than that with further improvements, but I'm not sure how much more, maybe upwards of 280k. 

Remember to make a donation.

@Kent FordI agree with @Ryan Konen regarding areas like San Antonio’s outskirts, parts of Fort Worth, and growing cities like Tyler and Lubbock, which are becoming popular due to relative affordability and job growth.We will see an interest in smaller metro areas where prices are more accessible and a surge in new construction aimed at entry-level buyers.