Detroit, MI · Member since 2017 · 2 posts · 1 vote
Hi All,
I am new to BP and this is my first post.
I am just getting my feet wet and located in Detroit, MI. Given my knowledge I feel the BRRR strategy makes the most sense for given most of the properties in Detroit are available for very little money.
When using the BRRR calculator, I am not sure what numbers in the analysis are most important. Does anyone have experience with this calculator, that may be able to highlight some key metrics and explain why they are important? Is there other models/ calculators you all like to use to get an idea of what kind of investment you're making?
Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
8y
Welcome to BP@Adam Dean. All of the numbers are important in utilizing the BRRR strategy. You need to accurately estimate the amount of repairs you will need to perform. Also very importantly is to accurately estimate the ARV of the property, because your refinance will be based on the new value of the home. If you make a mistake on either of those two numbers, the strategy may not be beneficial. It is a very powerful and useful strategy when used properly.
Detroit, MI · Member since 2017 · 2 posts · 1 vote
8y
Appreciate your insight Dan, I can see why this is important.
Out of curiosity, what metrics do you use to decide whether or not an investment will be profitable as a hold and rent property ie Cash on cash return, appreciation etc.. I am trying to become well versed in the numbers as the guiding principal in my investments.
I understand this is probably a common theme on this website so if you have any generic forums, threads, or reading material that you find valuable I would appreciate any help. Thank you!