Can anyone please explain what to calculate to determine holding costs for a property during a rehab?
Thanks
Principle
Interest
Taxes
Insurance
Utilities
Loss of use of any cash tied up
Any manangement expenses
Any maintenance expenses (snow removal, etc.)
Points
Basically, anything that you pay that is an expenditure for holding the property during the rehab period.
Some folks also include “closing costs” on ecah end of the transaction. These costs can either hae their own ‘category’ or be lumped in with ‘holding/closing’ expenses.
There may be more that others will point out…
Keith
Add Marketing fees to sell and commissions to be paid if using a realtor or any cashback incentives you plan on giving…