Here's my math:Purchase: $3.8 millionRehab: $3.7 millionInterest: $1.125 million (15% on bridge loan for one year)Points: $.345 million (4 points on purchase, rehab and interest)Total: $8.97 millionRent:$1.5 mil/yearExpenses: $750,000/year (on a big complex, they certainly will be this much)NOI: $750,000l/yearPayment: $968,000/year (9%, 20 year term, on $8.97 mil)Annual loss: $218,000/yearThat assumes you can complete the rehab and get it fully leased (i.e, filled consistent with local vacancy rate) in the year.

Still not satisfied I moved operations across the bridge to Philadelphia..

The length of the loan is also all over the map depending on the product, could be a short bridge loan type situation so it would be a shorter loan time, or it could be 15,20,25 or 30 years amortized.

The problem is of course it would take a few months for her to get settled and get a credit score that would reflect her current situation, so until then these months ought to be bridged with some creative financing.Am I wrong?

Bridge financing seems expensive.  

The HML says they can 100% bridge finance the purchase price because I'm buying it deep enough (280k ARV).

That said, at one point we had 21 projects going at once and most banks will only lend on a few at a time, at least with us, so to get a deal done we've had to use bridge or HML.

New Jersey can be tough, especially with the higher property taxes compared to other areas nearby and across the bridge. 

Although it would be more common for hard money to be used as a bridge to long-term financing.

@Zach Lemaster just a thought, i know some hard money lenders will bridge the down payment gap for you too. meaning, in addition to funding the loan, for example, 80% LTV plus 100% of rehab, they will do a supplementary loan to help cover the down payment. so you have two loans, but if the deal is good, it gets you into the deal with little out of pocket and low barriers!