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Cindy Truong
  • Real Estate Agent
  • New York, NY
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BRRR Analysis in Philadelphia: Help with numbers, please!

Cindy Truong
  • Real Estate Agent
  • New York, NY
Posted Aug 7 2019, 09:16

Hi everyone,

I'm still in the research phase of my BRRR strategy and just getting estimates to see if I understand the numbers. My main issue that I come across a lot is that I never know how to estimate rehab cost, whether it's a gut renovation or just cosmetics. Can someone assist me with that or provide insight?

I am using "657 N 41st St Philadelphia, PA, 19104" as a first model. I am gauging that the ARV is $250k and I keep with the purchase price at $120k. If I incorporate a hard money lender, I am estimating they will loan me 65% of purchase price and and 95% of rehab costs, with 2 points on the loan for 12 month period (I got these numbers off a hard money lender at a presentation). Based off rentometer, I will also say rent is $1500 to 1700/mo.

This is as far as I got building the model so still need to incorporate the refinancing portion, taxes, vacancy, repairs, property management... so please let me know if there is anything I should also taken into account or if any assumption is already wrong. Greatful for any help necessary. 


Thanks! 

Cindy

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