One thing that I can remind you - you MUST HAVE RESERVES, and you will also have closing costs as well as pre-paid escrow items.

I would break it down month by month in the construction stage based on the draws you are going to require.A6: List 17 named ‘Interest Only (est. 5 months)’ accounts for the prepaid cash to pay the interest only of the mortgage.We are estimating a 5 month construction period of which a total of $30,067 will be needed in advance.The assumption is that we will begin construction in May and complete by September.Year 1 only includes 3 months (Oct, Nov & Dec) of full mortgage payments ($96,682 annually / 12 mo. = $8,057 x 3 mo. = $24,170).We did the same calculation method to est. the year 1 (buildout year) for the taxes and expenses.

That does not include the prepaids you need for tax escrows.

“Prepaid interest” is a thing: that means my first six months are paid and I don’t have to worry about paying for six months.

Other closing costs such as loan origination, title fees, prepaid escrows etc also will be involved.A good strategy I like to use with buyers is to get as much seller assist as possible.

Why not purchase with cash to avoid closing costs and prepaid monies.

The more expensive option would be a 2 sim phone with a pre-paid "pay-as-you-go" number on one of those sims.

Here are the terms:Offer terms with seller financing:Purchase: $250,000Down: $30,000Seller Carries: $220,000Interest due to seller (annual): 5%Term: 18 monthsPayments: Interest only = $917Closing Costs (1.3% for escrow and recording fees and prepaid insurance/taxes/interest): $3,250Rehab and Holding Costs:Rehab: $60,000Property Taxes (monthly): $257Insurance: $200Utilities: $150Plus 10% buffer = ~$670Resale:ARV: $375,000Closing Costs (3%): $11,250Commission (5%, my partner and I would co-list): $18,750My Contribution:Cash Invested: $90,000 (down payment + rehab cost)APR: 5%Term: 5 months (could vary depending on number of months actually held)ROI:ARV: $375,000(Selling Closing Costs): (11,250)(Commission): (18,750)= Gross Margin: $345,000(principal on seller carry): (220,000)(total interest on seller carry - $917 x 18): (16,500)(purchase closing costs): (3,250)(holding costs - $670 x 5): (3,350)= Gross Profit: $101,900(repay my cash investment plus interest): (91,891)= Net Profit: $10,009Here is the spreadsheet I used for all the calculations:Have I calculated everything correctly?

. ------------------------------------------------------------------------------- STANDARD CLOSING COSTS Closing Costs Origination Fee $2000 Appraisal 500 Title Insurance 390 Title company closing fee 500 Underwriting Fee 700 Processing Fee 240 Recording fees 88 TOTAL 4418 Tax Escrows & Prorations (e) 7000* First year of homeowners ins (e) 700 Prepaid interest (e) 300 Purchase Price 124900 TOTAL COST 137318 Minus Loan Amount 99920 Total Cash -37398 *Tax escrows and prorations may vary. 30 Years Fixed no points option- 5.375% (APR 5.62%)-Loan amount $99,920 principal & interest payment $559.52 plus taxes and insurance (estimated at $645 per month) for total payment of $1204.52 per month. """ Is this competitive???

You will need about $2000 at the start (prepaids, closing costs, etc.), plus enough to get the rehab started.