Bigger Pockets Tool -- Not sure what I did wrong?
Hi all,
Rookie here... I listen to the Bigger Pockets podcast and I decided to try the BP BRRRR tool for a 3-plex I am looking at in NYC. 3.5% down house hack where I'll live in one unit for the first year. It's a $499,000 9BR 3BA multi-family property, estimating $75k in rehab expenses, an ARV of $700k, and $9600 in rental income ($3200/unit). These are ballpark estimates from what I've researched for this ZIP code. Using this tool, I indicated that I would refinance at 24 months. When I tried the BP tool, it showed the total annual cash flow dipping down to nearly -$40k after 30 years. Did I do something wrong when using this calculator?
Please be kind. As I said, I'm still new and just looking for some guidance.
Best,
LC
