Updated over 7 years ago on . Most recent reply
BP BRRRR Calculator - getting unexpected result for Cash needed
BP community,
I've been running through the BP BRRRR calculator a ton for a few months and keep running into an issue with how the calculator is setup that I figured I'd finally get on a post and see if anyone else is having this complication and if there are any suggestions or workarounds you may recommend. Here is a specific example I am looking at now:
Purchase price: 75k
Annual tax: 1,670
ARV: 200k
Purchase Closing Cost: 5,295
Estimated Repair Cost: 25k
----Loan---- (Here is where it gets a little tricky for me, see below)
Down payment of purchase price: I am getting offered a HML for 90/10. Breaking it down more, its actually a loan amount of 65k for the purchase price of 75k so really 85%, and 100% of the rehab(the full 25k).
Not a Cash Purchase
Down payment of Purchase Price: 65000
Loan Interest Rate: 9.99
Points Charged: 3
Other charges by Lender: 1,100
Fees out of pocket
Interest Only (Yes)
No PMI
Refinanced after 3 months
Estimated rehab time: 2 months
----Refinance---
Loan amount: $125k
Interest Rate: 5
Closing cost: $4k
Wrap points into loan, NOT interest only, No PMI, Amortized for 30 years.
So the issue I'm seeing is after finishing the report under "Acquisition", that the loan amount shows as $65k and the "Total Cash needed at purchase" shows as $40,345. What I expect to see is a loan amount of $90k and a Total Cash needed of somewhere around 17-20k.
Any help would be appreciated. Thanks!