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Kyung Oh
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Question from BRRRR book by David Greene

Kyung Oh
Posted

Hello every one,

I'm a newbie just started to educate myself in real estate investing. Is there anyone who read BRRRR and answer my question?

In page 26, last paragraph right above the Example equation, it says "your cash flow would decrease by $150 a month at today's interest rates."

And I can't not figure out where that number is coming from.

I know the example is continued from page 25, but still the number $150 doesn't make sense to me. How borrowing $30,000 to decrease basis will decrease monthly cash flow by about $150? I understood that the cashflow will decrease since you need pay monthly payment of $30,000 you borrowed for decreasing your basis.

Please someone help me understanding where that number came from and how it's calculated.

Thank you.

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