For example, if let's say you paid $8k in interest this month on a variable rate, but you are only obligated to pay $6k because anything above that is covered by the rate cap then after the lender reimburses you from the rate cap you would take the deposit of $2k and lessen your interest expense?

I would recommend you solidify your cost of debt on both the first loan + rehab as well as the refinance (know how much equity you will be able to pull out and at what terms), so you aren't left with any variables.

You're going to have to address a few variables, but here are some for starters:What is the extent of demo and why?

Hey @Daniel Mills Birmingham is a decent sized place, so there is definitely variability from zip to zip, and from street to street within zip codes.

@Jason Snell I'm from Manitowoc and there's to many variables for me to answer that question (is this a C class rental duplex or A class single family).I can tell you though that getting contractors to answer their phone or return a call is becoming impossible here.

If rentals you always have the ugly Blue State thing waiting to popup.Too many variables.

Hi Sarah, A "good" Ground Up pro forma should be structured to identify the key inputs as variables that can easily be changed in isolation or in combination to report information that is pertinent to the project and its Stakeholders (Investment Partners and Developer).The central reported elements should include project performance predicated on a Merchant Build (Build and sell one year from rent up or sell out) AND based on an inferred holding period as well as provide a short but comprehensive Cost Recap (Total Project Cost for Land-On and Off Site Cost, Hard cost (slab up), Soft Cost and Cost of Capital (Financing costs and fees).

It’s amazing how many wildly variable stories and circumstances we can see and hear about in this industry.

The cash flow given accounts for variables in repairs, vacancies, and capital expenditures over time averaged out as a monthly expense, as these are impossible to guess exactly right over decades(especially capex).

What I am confused about is, if I get a HELOC for 300K and this HELOC has a fixed 8% APR (I would try my best to get a fixed rate HELOC vs variable), and I (for example) then buy a 150K house and put down 20% (equals 30k).