BRRRR Excel Model Help

[Chris Mooney]

Hi all!

I'm building out BRRRR model in Google Sheets. I know there's great free tools out there, but I wanted to build my own BRRRR model so I'm very familiar with the underlying math, plus I also just enjoy the process. I'm using a combo of ChatGPT, Google, and just foundational knowledge of Real Estate math.
I want to ensure I'm building this all right. Is it the right process to keep acquisition costs (purchase price, closing costs, rehab) totally separate from anything hard money lender relevant? I'm making the assumption that my acquisition calculator is my day zero estimates, so it makes sense for HM points and fees to be lumped into there, and not added into the refinance math on the backend of a deal.

Any other Excel hobbyists (or professionals) build their own BRRRR models in excel/sheets? Anything I should be extra mindful of to ensure I don't ruin my analysis and get myself into hot water?

[Kevin Sobilo]

@Chris Mooney, I did this sort of thing in Excel but without AI to assist. I did however use a well vetted calculator to model my version after so that I could double check what I was doing initially. 

My final deal results are based on the END of the BRRRR process.

So, the HM costs would apply to acquisition and possibly also the rehab. If you are applying it to the rehab you want to factor in the time to rehab because that will determine some of the HM cost to you. I buy and rehab in cash, so I rarely underwrite with loans for acquisition and rehab personally. 

So, the HM costs apply to acquisition and possibly rehab costs and both of those categories get added to the refi costs to get your total cash invested which is used to calculate things like your CoC.