Bigger Pockets Calculator

4 Replies

I heard a webinar the other day in which Brandon mentioned and demonstrated the calculators of the Bigger Pockets website.

I was really impressed but something bothered me.

Is there any relevance to the area/zip code/neighborhood i choose to invest in or is it just a matter of numbers? because the calculators doesn't bring it in consideration.

thanks.

@Moshe Katzir , I don't think the area/zip code makes any difference in the calculation.  Since there are no items that are automatically filled in with the address (like taxes or cap rate), I believe it is for reference only.  I hope that helps.

In choosing a deal, yes the area, zip, neighborhood does matter tremendously.

For the calculator purpose, it ensures you have as much detailed information as possible for your investments you draw up. And later down the line it helps you organize the reports

Thanks @Bjorik Mutize and @Craig wWilcox. My question arised  when i saw a webinar replay hosted by @Brandon Turner. He wanted to demonstrate how he uses the calculator and all that matter to him at the end was that the cash on cash will be at least 12% and monthly cash flow will be at least 100$.

@Moshe Katzir

I think you're on the right track with your question. Investment in general (i.e. including real estate) is ALWAYS a balancing act between return vs risk. Investment returns are usually quantifiable in numbers like dollars, percentages, etc. while investment risks are NOT quantifiable but are just as important a consideration. Calculators such as BP calculator, Excel, etc. can crunch numbers all day long hence are very good at calculating returns but they fall short in calculating risks because risks are not expressed in numbers.

If you listened to a podcast and got the impression that anything with 12%+ CoC and $100+ monthly CF is a good investment and that nothing else matters, then the expert had done you a disservice by ignoring the other side of the investment coin.

Cheers... Immanuel

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