Calculators that include hard money

[Tylere Weaver]

Looking for input on how others might culatete the holding costs associated with a brrrr.  The cost of the hard money and the cost of the dscr loan that one might refi into.  Also the repayment aspect while you hold the proerty?  

[Steve Garthe]

It sounds like you've already identified the key variables: acquisition cost, rehab budget, timeline, carrying costs, and your refinance exit.

When I model these scenarios, I usually compare:

• Total interest paid during the project
• Points and lender fees
• Monthly carrying costs (taxes, insurance, utilities, etc.)
• Opportunity cost of tying up cash or a LOC
• Expected cash-out proceeds after stabilization

One thing I'd be curious about is:

• Purchase price?
• Rehab budget?
• Estimated ARV?
• Expected hold time?

With those numbers, it becomes much easier to see whether the lower cost of a LOC outweighs preserving liquidity and leverage through a hard money structure.