How to calculate NEEDED ARV to cash out of BRRRR?

[Paul Sterman]

Hi,

I would find it very helpful to figure out what ARV I would need in order to cash out a BRRRR.

Is this the correct calculation or am I missing something (assuming refi at 80% of ARV):

NEEDED ARV = (purchase price + rehab costs) X 1.25

Is that the correct calculation to figure out if I would get my down payment (included in the purchase price) and my rehab costs back? Or am I missing something?

Thanks!