New Investor-First Deal

2 Replies

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. 

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