CoC Return/IRR on a BRRR deal

[Andres Vanegas]

Hey Folks,

Wondering when Cash on Cash Return and IRR should be evaluated on a BRRR deal? Would you do it at the point of initiation - when you first purchase property- or the money you have in( if you do have money in) once you refinance?

Looking to acquire four more units this year (currently own a duplex) and need to get creative with financing. Will either be two duplexes or a four unit. Shooting to purchase with hard money with a partner and then refinance out of the hard money with a traditional mortgage.

Any insight would be helpful!

[Joshua Mellor]

@Andres Vanegas

The cash on cash doesn’t matter as you are ideally pulling all your money out of it in the refinance stage.