Cash Needed (All In Closing) – The Total Cash needed to purchase property and rehab.
Purchase Price
- Flip Mortgage Loan Amount
+ Repairs
+ Closing Cost Amount
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= Cash Needed (all in closing)
Cash Needed (Holding Cost x Mos.) – The Total Cash needed to maintain property during rehab and listing periods.
Holding Cost Mo.
+ Taxes
+ Insurance
+ Mortgage Payment
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= Cash Needed (Holding Cost X mos.)
Equity Profit (At Closing) – The Profit you make at closing when Purchasing the Property using the ARV. In our case, we also take Repairs under consideration.
After Repair Value
- Purchase Price (or) Flip Mortgage Loan Amount
- Repairs
- Closing Cost Amount
- Mortgage Points
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= Equity Profit (at closing)