Calculating property for BRRRR Strategy
Hi All,
I'm scrolling through properties just so I can get my mathematical up and discovered this property where I was running comps for. Below are the exact numbers that I calculated and would like to know if I'm doing it right.
- Purchase price 133,614
- Down payment (20%) $26,722.8
- After repair value 190,878
- Property Taxes $255
- Home Insurance $66
- PM $160
- Mortgage $583
- HOA 0
- Vacancy (10%) $160
- Repairs (5%) $80
- 1600 Monthly rent
- -1304 the cost
Monthly Cash flow is 296
Cap Rate
Annual net(minus mortgage)/ purchase price
10548/133,614
7.9% cap rate
Cash on cash
Annual net/ Cash invested
3552/26722.8
13.29% cash on cash
Note: I haven't included CapEx.