Here is a breakdown of the numbers on this deal.  This is an example of what you could expect using my service to buy rental property.

For this deal, the investor used a hard-money lender to fund the purchase and rehab.  The investor submitted $2,000 in earnest money with the offer.  After that, the lender funded everything.

Once the rehab was complete, the investor used a different lender to obtain long-term financing.  He elected to do a 'cash out' refi, so he accepted a higher monthly payment in return for tax-free cash back at closing. 

Acquisition Costs

$40,000 -- Purchase price

$ 3,000 --  Points and closing costs

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$43,000 --  Total

Rehab Loan Details

$43,000 -- Acquisition Costs

$20,000 -- Rehab escrow

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$63,000 --  Total loan amount

12% APR

Interest-only payments

One-year balloon

Rehab/Holding Costs

$12,000 --  Rehab total

$  8,000 --  My fee

$  2,000 --  3 months holding costs

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$22,000 --  Total

"Rent Ready" Total Costs

$43,000 --  Acquisition cost

$22,000 --  Rehab/holding costs

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$65,000 --  Total

Permanent Loan Details

$105,000 --  Appraised value

6.37% APR

30-year fixed

75% LTV loan

  $78,750  --  Loan amount

($62,000) --  Payoff rehab loan

($  4,000) --  Perm loan closing costs

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$12,750 --  Cash Back at Closing (tax free)

$653 -- Loan Payment (PITI)

$795 -- Rent