Short term (12 months), low loan to value with borrowers who have strong credit and significant assets.

Purchase price: $150,000Rehab/ Holding Costs: $182,000ARV: $353,000Capital left in deal: $49,600Cash Flow: $1,300/ month What made you interested in investing in this type of deal?

My realtor stated I may not have enough cash to cover rehab cost after selling.

We invest in Greene County, Ohio and currently have 24 low income units. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

That means on a $500K single-family flip with a $200K rehab budget, you're paying $40K-$50K in carrying costs alone.

With 8% you should easily cover the heloc cost, and more to pay it off down the road.

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details:After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

The median home price is also very low nationwide which creates a low barrier to entry.

From my experience, mentorship can provide structure, accountability, and networking opportunities, but it often comes at a high cost.