BP Buy & Hold Calculator

2 Replies

So I ran a few deal analysis but have no idea if I am typing in the correct numbers.  For instance a 158,000 property do I need to considering rehabbing anything to increase the value? Also what are general loan points for a conventional loan? And rent should be at market rate/average or slightly higher?

Hey @Travontaz Lowry

When I do the calculators I like to do the rental because that is my end goal to build up the portfolio. So that is the one I am not familiar with. There is a "rehab" box that you can add the value that will get your property to the ARV. As far as how much that is a property by property assessment. I almost always add something to that field because even a move in ready investment will have something wrong the needs fixing.

"points" are how you buy down you loan percentage.  Usually a point is 1% of the loan so if you have a $158,000 property you will have to pay (upfront) $1,580 and then your loan will go down by like 0.30%.  If you keep the loan for  a certain amount of years you will end up saving more than the $1,580.  But that may take 6-8 years before you save that money and if you refinance or move in a year or two you will not get that money back. Does that make sense? 

When I do my calculations I like to put my market rent as slightly less.  This adds a nice buffer if I mess up in any way.  I always like to get the surprise of higher rents and income after I buy  a property then lower or even worse writing a check every month instead of making good cashflow.