Deal:ARV of $143KPurchase of $75KRepairs are $25KTotal capital is $100K (70% of ARV remember)Turn around is 4 months Draws 8 This is what the Hard money lender terms would look like;LTC (loan to capital) 80%Term 6 monthsInterest 12%Points 2%Misc fees $1500(add ext fees if extending if not ideal stuff happens for an example ) 2 points for 6 month extensionInspection fees of $175 each (remember an ‘inspection’ for each draw to make sure you’re doing the work they think you’re doing with hither money)Now if this flip takes 4 months, here are the total carrying costs;Total loan amount cost $100K (.8 how much lent ) = $80K The two points at 1% = $80K x .2 (for two points) = $1600Interest so the amount lent of $80K x .12 (12% interest) = $9600 in interest (the total ANNUAL interest) so to carry that for a total of four months would be $9600/12 = $800 in the deal for 4 months = $3200 in interest payments Inspection fees cost (remember 8 @$175 each for each ‘draw’) = $1400Now if you didn’t exit the deal in 4 months and added the extension of 6 months you’re adding in the points for the extension (avg of 2 points per 6 months) So points $1600Misc $1500Interest $3200Inspect

Sec. 1.469-1T(e)(3)(ii)(A):https://www.law.cornell.edu/cfr/text/26/1.469-1TShoutout to @Brandon Hall and his ever informative FB group, where this topic is discussed extensively.

Any Borrower defaults under any loan, lease, extension of credit, security agreement, purchase or sales agreement, orany other agreement in favor of Lender or any party other than Lender that continues beyond any applicable notice and cure period.11.5.

IF not, and you signed the boiler plate contractor agreement you are in for a wait.DO NOT lock your loan, you will pay in cash for extensions and be under stress.Do Not buy anything specific to this house that cannot be returned in a year.Keep sending your lender your bank statements, pay stubs, and STAY ON YOUR JOB.Do everything to keep the deal moving ahead.

Buyers ask for 2 week extension and we grant them this (written). 2 week goes by and no news from HOA.

If you passed that date would assume it is extension fees.

The CFPB is already talking December 31st eviction ban after cdc promised no more extensions.

The other way to do it is going the traditional 1031 route but giving yourself two 15 day escrow extension options to extend escrow on your down leg in case you need more time to find a property.

I do have sump insurance, but it only covers 5K (the max they would allow), and I don't think the damage would have been nearly as extensive nor should the fact that I have some insurance relieve the management company of it's failure to act in a timely manner. 

I think 1950-1990 is the sweet spot for getting ROI and not needing extensive repairs