Hi all - This is my first post!! I have been reading up/getting educated a bit on how to find a good investment property so I can get going. Seems like one of the critical tools in the arsenal is a calculator to plug-in parameters and compare various listings (by cash flow, projections over time, etc.).
Does everyone build their own investment property calculators (on Excel etc) to compare units? Or are there pre-built ones or a starter template that has worked well?
Wholesaler · Texas, USA · Member since 2022 · 139 posts · 40 votes
2y
Bigger Pockets has a BRRRR calculator that can help you understand evaluating thee properties. Deal Check is an app I used to help me evaluate as well. You can go to the app store or google to get some other ideas. There are spreadsheets out there and people do make their own as well.
Like @Nicholas L. was saying, Your Comps to ensure ARV, rehab estimates and an actual scope of work from a contractor, and a lender to refinance are critical for a BRRRR to go right!
My recommendation would be to get on list in areas you are looking to invest in and start analyzing deals. You can get on off market list in your target areas from wholesalers and real estate agents. You may even want to get connected with property managers as well.
You should also consider the distance from you because rehab is involved and it is your first one you are going to want and need to be more present and hands on then you think.
Consider the type of refinance you are going to need to do and start chatting with lenders about your options to refi and what you will need. Also, even though rates are expected to drop this year. It is ALWAYS better to be conservative and run your rates higher. You want to be content with the worst case scenario because trust me... the worst case scenarios happen!
Feel free to reach out and connect if I can answer questions or help in any way.
yes, sure, you need calculators to run the numbers, but that's not the hardest part - the hardest part of BRRRR is... every part of it =)
you need to find a great deal way below market value where you can significantly boost the ARV via the rehab. and you don't get the ARV via a calculator - you get it by looking at comps
and you need a contractor ready to go on that rehab - and you need to know how much the rehab is going to cost
then you need to refinance and hope that you at least break even
so sure, play with calculators, but you'll need to look at lots of properties and estimate lots of rehabs
Wholesaler · Texas, USA · Member since 2022 · 139 posts · 40 votes
2y
Bigger Pockets has a BRRRR calculator that can help you understand evaluating thee properties. Deal Check is an app I used to help me evaluate as well. You can go to the app store or google to get some other ideas. There are spreadsheets out there and people do make their own as well.
Like @Nicholas L. was saying, Your Comps to ensure ARV, rehab estimates and an actual scope of work from a contractor, and a lender to refinance are critical for a BRRRR to go right!
My recommendation would be to get on list in areas you are looking to invest in and start analyzing deals. You can get on off market list in your target areas from wholesalers and real estate agents. You may even want to get connected with property managers as well.
You should also consider the distance from you because rehab is involved and it is your first one you are going to want and need to be more present and hands on then you think.
Consider the type of refinance you are going to need to do and start chatting with lenders about your options to refi and what you will need. Also, even though rates are expected to drop this year. It is ALWAYS better to be conservative and run your rates higher. You want to be content with the worst case scenario because trust me... the worst case scenarios happen!
Feel free to reach out and connect if I can answer questions or help in any way.
I have begun talking to a few agents, and am starting to get an influx of leads with data points, but am stuck on how to do comps quickly - hence my question. The Deal check app seems interesting and pretty intuitive - will check it out.
And I am starting the process on PMs/lenders as well. Hoping to land more of a turn-key deal to begin with vs. rehab (that seems daunting, esp. as it is my first set of investment properties, and I am looking out-of-state).