We just barely scraped by closing yesterday due to some communication hiccups between the lender and the title company, but at 4:45 p.m., we did our part as the buyers and signed the documents. However, it was late in the work day, so the rest of the deal did not get completed until today. This morning, we wired the money for closing and are waiting on final confirmation once the sellers sign. Which is a bummer, because I was hoping to give you guys a virtual tour yesterday! Oh well, I will find a time once the keys are in my hand this week to show you what it looks like.

So, what does the deal look like so far?

Purchase Price: $56,000.00

Estimated Rehab: $48,842.00

Appraised After Repair Value: $134,000.00

With our hard money lender, Longhorn Investments, they lend up to 70% of the After Repair Value (ARV), which includes putting the rehab funds into Escrow. So far, we have put the following actual cash out of pocket for this house.

Earnest Money: $2,500.00

Cash to Close: $7,040.53

Appraisal: $550.00

That totals up to be $10,090.53 cash out of pocket so far. Our interest only payments with this loan start on May 1, 2019 with a $1,187.50 per month payment. The contractor will be starting Monday, and expects it to take 6-8 weeks. We are hoping to only have to pay two of those payments before we can refinance into a conventional loan.

We worked it out on this neat tool our group has to estimate what our gains, cash out of pocket and cash flow might be, and the numbers look great.

All of the above mentioned real costs were input, as well as estimates for number of weeks until rented, 3 months until refinance, etc.

Sorry for the technical post, but I am really enjoying seeing great numbers come back at us when we are working through this thing. Shout out to our realtor, though, because he is the one who found this deal!

My birthday post won’t be so dry. 🙂

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