When analyzing a deal on the BRRRR calculator the initial monthly cash flow reads:
$2,161 Pre-Refinance/ $640 Post Refi
When I scroll down on the PDF the 50% rule says:
Total Monthly Cashflow using 50% Rule: $1,250-Pre Refi
Total Monthly Cashflow using 50% Rule: -$270-Post Refi
Of course the stupid question is, which one am I suppose to go off of? The deal is a great deal in my mind, but the 50% rule is giving a little doubt although my gut says this is the right deal.
Any help is appreciated. Thanks all, JT
@Jamie Tarrant one would assume your temporary loan would be at a much higher rate than after refinancing. So you return should be higher after refinancing.
Thanks Ned. I do appreciate the reply. Have a great night. JT