Skip to content
×
PRO Members Get
Full Access
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime.
Level up your investing with Pro
Explore exclusive tools and resources to start, grow, or optimize your portfolio.
10+ investment analysis calculators
$1,000+/yr savings on landlord software
Lawyer-reviewed lease forms (annual only)
Unlimited access to the Forums

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago on . Most recent reply

Account Closed
  • Rental Property Investor
1
Votes |
7
Posts

Newbie BRRRR return question

Account Closed
  • Rental Property Investor
Posted

I am a relatively new investor (3 years in and 12 doors). It has been a casual affair for me but now looking to ramp up.

I am having difficulty getting an ROI that I could compare to other investments (like Stocks, CDs, etc.). I basically take all the money I put in, minus out all of my expenses and do a simple ROI (in-out)/out and that works great except for the few properties where the amount of the loan was actually more than I have in the property (I.e. I actually cash out). In that case the denominator of the equation is 0 or less than zero.

In that case how do I figure out the ROI (if zero I get a divide by zero error and if negative return if less than zero).

Any help much appreciated!

Most Popular Reply

User Stats

902
Posts
550
Votes
Jared Hottle
  • Real Estate Agent
  • Cedar falls IA Waterloo, IA
550
Votes |
902
Posts
Jared Hottle
  • Real Estate Agent
  • Cedar falls IA Waterloo, IA
Replied

Sigmund. I think you are inadvertently showing us why BRRR investing is possibly the greatest return on your investment. That is why so many champion the strategy because if done perfectly you will have an infinite return on your money. You hope to never leave money in the deal. Now realistically it means you just get the money you put in back out which allows you to supercharge your portfolio because you are not needing to save 20% for a downpayment for each property.

business profile image
Jared Hottle Real Estate
5.0 stars
9 Reviews

Loading replies...