I need help using the BRRR Calculator

BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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I need help using the BRRR Calculator

Joel BayerPro Member
Member since 2024 · 4 posts · 3 votes

Hello Bigger Pockets, I am hoping someone can help me figure out what I am doing wrong using the BRRR Calculator. I putting 20% down on a property and financing the rest. I am also getting financing on 100% of the rehab. I entered the purchase price less my down money in the purchase section and the rehab amount in the rehab section. I entered interest only for the loan. How do I get the calculator to calculate interest for both the purchase price and the rehab. It seems to be only calculating the interest on the purchase price less the down payment. If anyone can help me I would appreciate it.

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Cam SchwartzBusiness Member
Lender · Chicago, IL · Member since 2024 · 102 posts · 48 votes
2y

Hey Joel, I know others have run into similar issues with the BRRRR calculator. For that reason I built a full-functioning cash flow model taking into account hard money, the mortgage refinance and all relevant operating expenses to assess monthly cash flow. I've shared with my clients and the investors in my network and happy to shoot over via email if helpful!

[email protected]847-702-6940
Vert510 Reviews
WebsiteView Page
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  • Ryan Fox
    Investor · NV and CA · Member since 2016 · 375 posts · 229 votes
    2y

    @Joel Bayer- I stopped using the BRRRR calculator a while ago because it doesn't handle complicated financing scenarios like this well. The easiest way to get around this is to figure out how much the property would cash flow using the "rental property calculator." You'd analyze it as a "cash purchase" and add a special expense category for your principal & interest payment.

    Once you see how much it cash flows, you can divide by your total cash investment to find the cash on cash return, then make assumptions about appreciation and mortgage paydown to find your total return.  

    Hope this helps.

    0Reply
  • Joel BayerPro Member
    OP
    Member since 2024 · 4 posts · 3 votes
    2y

    Thanks Ryan. I appreciate your response. How do you add a special expense category for your flip loan?

    0Reply
  • Ryan Fox
    Investor · NV and CA · Member since 2016 · 375 posts · 229 votes
    2y

    @Joel Bayer- Under the "expenses" area, there is a cateogory for "other."  That's where you can put in the principal & interest payment.

    0Reply
  • Cam SchwartzBusiness Member
    Lender · Chicago, IL · Member since 2024 · 102 posts · 48 votes
    2y

    Hey Joel, I know others have run into similar issues with the BRRRR calculator. For that reason I built a full-functioning cash flow model taking into account hard money, the mortgage refinance and all relevant operating expenses to assess monthly cash flow. I've shared with my clients and the investors in my network and happy to shoot over via email if helpful!

    [email protected]847-702-6940
    Vert510 Reviews
    WebsiteView Page
    2Reply
  • Nina V.Pro Member
    Investor · Member since 2023 · 39 posts · 18 votes
    2y

    I used the calculator today and it was adding cashflow during rehab months 🤦🏻‍♀️

    I also noticed that rent did not increase for years 2-30. 



    0Reply
  • Jesse Conrad
    Memphis, TN · Member since 2020 · 4 posts · 0 votes
    2y
    Quote from @Cam Schwartz:

    Hey Joel, I know others have run into similar issues with the BRRRR calculator. For that reason I built a full-functioning cash flow model taking into account hard money, the mortgage refinance and all relevant operating expenses to assess monthly cash flow. I've shared with my clients and the investors in my network and happy to shoot over via email if helpful!

     Hi @Cam Schwartz, I have a similar situation and this would be very helpful.

    0Reply
  • Cam SchwartzBusiness Member
    Lender · Chicago, IL · Member since 2024 · 102 posts · 48 votes
    2y

    @Jesse Conrad Feel free to DM your email and I'll send you a copy - which also goes for any others interested in the tool. 

    [email protected]847-702-6940
    Vert510 Reviews
    WebsiteView Page
    0Reply
  • Irma Leibas
    Real Estate Agent · IN · Member since 2024 · 9 posts · 6 votes
    1y

    Hello!

    I'm new to Bigger Pockets. I am a realtor in NW Indiana and seriously considering doing my first flip. Nervous as hell! One of my clients needs to sell her home in Gary, IN and I was just thinking if I should buy it myself. I was considering using the BRRR calculator but it seems pricy !

    0Reply
  • Cam SchwartzBusiness Member
    Lender · Chicago, IL · Member since 2024 · 102 posts · 48 votes
    1y
    Quote from @Irma Leibas:

    Hello!

    I'm new to Bigger Pockets. I am a realtor in NW Indiana and seriously considering doing my first flip. Nervous as hell! One of my clients needs to sell her home in Gary, IN and I was just thinking if I should buy it myself. I was considering using the BRRR calculator but it seems pricy !

    Hi @Irma Leibas, we have a proprietary BRRRR cash flow calculator I'm happy to share for free. Message me your best email!

    [email protected]847-702-6940
    Vert510 Reviews
    WebsiteView Page
    0Reply
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