How is "Total Profit if Sold" calculated
Hey guys,
Forgive me if I am overlooking something simple here, but my question is about the profit calculation that is a part of the BRRRR calculator. I understand the Property Value, Equity, and Loan Balance figures and how they are arrived at. I am having trouble figuring out how the total profit is calculated.
Would someone be so kind as to explain this to me?
Cheers!
P.S. The reason I am wondering this is because I am trying to figure out how to account for my profit after a second loan is paid back. I am using a part of a credit line in order to make up the difference between my cash outlay and my refinance loan. I will be paying 1.5% for that money. That second loan will be interest only for the duration of my holding period, to be paid back in full upon disposition.