$612K fix & flip in Columbus, OH — 85% LTC, 14-day close

Situation

A repeat investor found a dated four-bedroom single-family house in an established Columbus neighbourhood where renovated homes rent quickly. The plan was the classic BRRRR: buy, renovate, rent, then refinance and keep the house as a long-term rental rather than selling it.

Structure

The file priced at 85% of the $720,000 total cost — purchase plus renovation — well inside the 75% after-repair cap on a $900,000 ARV. Two points of origination at a 9.00% interest-only rate kept monthly carry predictable while the house produced no rent. Purchase contract, scope of work and entity documents were in on day one, so the loan closed in 14 days.

In numbers: a $612,000 loan against $720,000 of total cost left $108,000 of borrower equity in the deal. The value test — 75% of the $900,000 after-repair value ($675,000) — sat above the loan, so cost, not value, set the size. Fully drawn, interest-only carry at 9.00% works out to about $4,590 a month, and 2 points of origination came to $12,240 at closing.

Draws

The $160,000 renovation budget was split into four milestones: demolition and roof, mechanicals, kitchens and baths, and finishes. Each draw was submitted with photos and invoices and reviewed remotely against the approved budget, so the crew never waited on an inspector.

The file

What was in the file: the purchase contract, the itemised scope of work and renovation budget, the after-repair value estimate with comparable sales, the GC agreement with license and insurance, two months of bank statements showing the cash to close and six months of reserves, and the LLC documents and ID. A rent survey supported the planned refinance, so the construction loan and the exit were sized as one plan. The appraisal valued the house as renovated against recent comparable sales nearby. Every checklist item came back inside 48 hours, which kept the close at the fast end of the range. Title was opened on the day of application and insurance was bound before the appraisal came back. The term sheet set the final leverage and pricing against the published maximums.

Exit

Once the house was leased, the investor refinanced into a 30-year DSCR rental loan with the same desk. Because the appraisal, title and entity file were already familiar, the refinance used the rent and the new value rather than starting from scratch — the short-term loan paid off and the property stayed in the portfolio.

• Total cost well below the 75% ARV cap
• Itemised scope ready at application
• Same-desk DSCR refinance planned from day one
• Remote draw reviews kept the schedule moving

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