My numbers would look a little like this:Purchase: $161,851 , Rehab: $30,000 , Contingency: $3,000 , Carrying: $3,024 = $197,875 TOTAL EXPENSESMinimum ARV must be: TOTAL EXPENSES of $197,875 plus 30% MARK UP = $257,238.

Along with the waterfall, clawbacks, carried interest splits, ect......Specifically, in the Articles of Operations?

If you wanted to assess with greater accuracy, you should deduct the carrying cost of the $33k over the time period it takes to build the new unit (ie, the money isn’t generating income, but costing you ~4% interest).

In terms of the loan, if you qualify banks will typically finance 100% of the draws and you will just be responsible for the carrying costs.

I just want to be sure it is a good Deal and I’m not being carried by the Investor-motion lol! 

seems like a lot of work to secure listings.. if they put up the cash .. you pay 400.00 per hundred thousand carry cost while your loan goes through.and you put up 5% NON refundable EM .. 

I also got burned because I overlooked the box on the property disclosure that said it was in a flood zone.. it does not flood in this area but since it's in FEMAs flood plane, you need to carry gov.

One company owns everything and does nothing (this is your SLLC a/k/a “asset holding company”) and a completely separate company handles all of your operations (this is a traditional LLC a/k/a “operating company”) For the operating company which serves as your face to the world and through which you do all your business, you establish a Traditional LLC to carry out the operations of your investments.

You should have enough to carry you until you at least fix up one unit then rent for market value.

And the 50k left over will be savings available for any carrying cost that a loan would not cover.