Single Family Residence
Residential Fix and Flip09/30/2016
The Borrowers were under contract to acquire the single family home for less than the appraised as-is value. The purchase price was $85,000. The Borrowers plan to completely renovate the property before listing for resale. The renovation costs are estimated at $109,000. RCN Capital provided 80% loan-to-cost and the Borrowers put in 20% of the total project cost. Once the repairs are completed the borrower plans to list the property for around $240,000 and is anticipating a 19% return on investment. The loan-to-value based on the ARV (after-repair value) is 65%.