Risks: rates go down and you have to pay a prepay of 2 or 3 %; you have to sell and pay the prepay; rents decline & you can't make the payment like any other type of loan; cost upfront a little more than conventional; need to find experienced broker licensed in the state where subject property sits; servicers are bulldogs. 

Feel free to reach out if you have any other questions or would like to discuss!

Lets say its $270k and you are financing $220k and it takes a year at 12% thats $26k in interest plus other costs etc.

Simply put, we start off with the As Repaired/Completed Value (ARV), then subtract from that number a reasonable profit, the rehab cost (scope of work), which we've gotten good at, a contingency reserve for any "unexpecteds", our cost of capital/carrying costs (interest and costs of the leverage used), and our costs/fees on the buy and sell sides of a flip.

Feel free to share more about what you’re working on—I’d love to connect and collaborate.Wishing you a productive week ahead! 

A professional home inspection can help you avoid costly surprises by uncovering potential issues before you buy, renovate, or rent out a property.Key Areas an Inspection Should Cover:✅ Roof – The home's first line of defense.

I own the property free and clear and i use the equity as part of my business line of credit.

Today it has good cash flow (~$6k/month using 49% expense ratio) and is up ~$1m above costs.  

It will likely be cheaper than the cost of financing.

Feel free to reach out with any questions you may have or if you would like to see some past work.