BRRR holding costs, how do they factor?

[Andre M.]

In BRRR strategy, what happened to the monthly finance charges during the renovation? The math that I usually hear doesn't speak to whatever you are paying your lender during the 3-6 months of renovation.

BRRR is touted as a strategy that you can use with no money of your own. But If all of the loan is tied up in purchase and renovations, how do you pay those monthly fees?

[Tom Shallcross]

The closing costs, holding costs and refi costs are all highly overlooked expenses.  As @Jim K. mentioned, you need to account for this upfront and have additional funds and/or reserves to cover.   

If you want help calculating holding costs I put together a calculator I use for flips, DM me and I'll send you the link.  I understand you're looking to hold, but calculating the holding costs is the same exercise.