Owner occupied.I’m active duty Air Force so I used my VA loan to purchase additional properties as I moved.

Conventional loan How did you add value to the deal?

Hard money loan How did you add value to the deal?

Hey Rahma,Most are sitting at about 7.5% right now with variance based on FICO, region, loan amount, the DSCR itself, and even your experience. 

Home price is $369,000 Rehab given is $80,000 Down payment is $44,900 Loan amount that I will owe back is $404,100 Loan is for 6 months Holding cost for full 6 months is ($3500*6) = 21,000Closing cost = 19,553ARV = 575000 (my agent said $600,000 but I am doing 575,000 to be conservation, with the way the market is going I do question if I should estimate it lower)With my math, using the full rehab loan and full 6 months with selling costs included, I estimate around a $53,000 profit. 

No reason to pay ANY pre-pay penalty even on a DSCR loan. 

@Jason LeggettSubject to is you take over payments on the mortgage and make those payments and then you also pay the seller based on loan terms as wellMore to it but that’s it in a nutshell.

This deal is one that has been heavy on my heart as the seller is a close friend of mine, my current realtor, and currently in Foreclosure/Default on her Hard Money New Construction Loan which was her first investment.

Even just doing one of those is hard enough, but now you have to be an expert in finding discounted properties, rehabbing properties, rental and property management, maintenance, and raising capital and getting loans.

are you doing DSCR loans or seller financing???