BRRRR Calculator/Analysis Rookie Questions

[David Schulwitz]

Hey BPers, 

I'm increasing my BRRRR deal analysis as prospective deals come across my desk and I'm trying to sort of streamline/systemize things to analyze deals faster. Trying to take Brandon Turner's advice by analyzing AT LEAST 1 deal per day, hopefully more. Anyways, I'm a rookie and I've got some questions that are probably silly but I'd truly appreciate some experienced BRRRR folks help:

Question 1: On page 2 (purchase info) of the BRRRR calculator, it asks for "purchase closing costs" - the help pop up talks about how it's typically $1500-$2500, Brandon puts in $3000 while analyzing a deal on a YouTube video, and I'm trying to understand/figure out what I should be putting in this box. To be honest I'm not sure what these fees would be?? I understand that my hard money lender is going to have his/her fees and points, but those go in the next section below... What purchase closing cost fees am I accounting for here?

Question 2: Estimate Repair cost: Let me start out by saying that I'm reading J Scott's books (haven't finished yet), watching BP videos, etc etc; I know repair costs are going to vary GREATLY by area, contractor, property, and so much more.  With that being said, do you all out there use any sort of 'back of the napkin' estimates before you've gotten your contractor over there to see the property in person?  By going through photos, in my mind I sort of initially judge the properties based on the following 5 categories - 

Light Cosmetic	$10/sq ft
Heavy Cosmetic	$15/sq ft
Gut Job	$20/sq ft
Heavy Gut Job	$25/sq ft
Total Disaster	$30/sq ft

I'm not asking for a definite answer here, because again these are all going to vary greatly, but I'm curious what other people are using for their quick 'back of the napkin' per/sq ft estimated repair costs to compare...  Am I way off?  How do you all do your quick numbers here?

Question 3: Monthly Insurance on Fixed Landlord expenses:  

- What do you all do here?  Throw the same number down every time?  Actually call up an insurance person or take the time to get a quote?  Do some sort of a quick calculation?  I thought Sq Ft of the property multiplied by .05 might be a decent quick monthly back of the napkin estimate.  So 1700 sq ft home x's .05 would be $85/month.  

I'm sure I'll have more questions later....but most of the other inputs on the calculator I feel decent about.  

Thank you BP!  Happy New Year and happy investing.  Go make yourself a bunch of money :)

Dave