For calculating IRR, use the total cost of acquisition—this would be the mortgage balance plus the 50% buyout equity and any closing costs.Regarding refinancing, assuming the loan under the Garn-St.

@Matt Smith generally speaking it’s a combination of rising interest rates which have caused cap rates to increase (thus wiping out equity), debt is resetting at higher rates, rising opex costs due to inflation and stagnant or softening of rents due to an increase of supply.

How are you planning to fund the rehab costs?

I think it depends on the area and insurance costs.

I know that if a cost seg, l would need to back that out of my California return.Your answer seems to confirm what I suspected.

We've learned a ton, but at a significant cost.

The biggest problem I see with seller financing is the cost of repairs (as well as holding, selling, etc.)

How did you incorporate the funding fee PLUS the closing costs?

Obviously need to check zoning and set up costs etc. 

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