When using the BRRR calculator under the "Purchase Loan Details", you can choose either cash or financing. I plan to use a HELOC to pay for the entire purchase. To get an accurate estimate, what inputs should I use? Do I just check off cash, but then what about the financing rates on the HELOC. If I choose a down payment, then I can only choose up to 50%, but I am putting 100%. I just want to make sure I get the math correct before making an offer on my first deal. Any insight would be really appreciated.
@Bill Dengler you should use the calculator with 100% cash and add in your heloc expense into the numbers or create your own simple excel with what you need. I'm happy to send you an excel I use if you reach out. HELOCs can have a variety of financing options so figure out what your monthly heloc payment will be for principle and interest then factor that into your numbers. If you are paying down p&i each month then your monthly payment will decrease each month so your numbers and roi will improve. If you have an interest only heloc then your numbers should be simplified to track. Good luck.
Hi @Danny Randazzo , thanks for the information. My HELOC is an interest only one. I will send you a private message as I would really appreciate the excel sheet.