Help with the BRRRR Calculator

[David Olson]

All of a sudden I cannot figure out simple math to save my life. I am trying to place the numbers below into the BRRRR Calculator but it is spitting out some weird numbers and I'm not even sure where to start. Before I go any further...I'm not pursuing this deal at this purchase price but simply trying to get the simple math down which all of a sudden doesn't seem simple.

The fist photo is what I received back from a HML after I sent them a "hypothetical" deal. I am wanting to run through the numbers as a practice run before I jump in. The other photo is what I placed into the BRRRR Calculator and I am trying to see where I went wrong. $150k needed at closing? I also added 3 points and fees into the calculator. So confused.

[Anton Ivanov]

@David Olson

I think so, I looked over the screenshot and don't see any glaring errors. Just make sure all of the numbers you're inputting are correct and I would do this a few times for different properties until you feel comfortable.

Also, what helped me when I was starting out is actually go through the math (at least some of it) with a calculator and just understand how it's calculated. If you don't know what some of the terms mean (like cap rate, ROI, etc.), search up at the top and there will likely be a blog post that goes over the formula in detail.