Updated over 5 years ago on . Most recent reply
Analyze my first potential BRRRR deal
Details of my first potential BRRRR deal are below, with specific numbers given by my private lender and bank for refi. The rental numbers come out to roughly 1.08 DSCR, but really in this for the principal paydown, tax benefits, and property appreciation. Got 3.4% total closing costs (including origination), which I believe is really good in the current cash out refi market (hearing 6-8% in other parts of the country).
Let me know what you think and if i missed anything. Thanks!
| Inputs | |
| Purchase Price | 100,000.00 |
| Rehab | 17,500.00 |
| ARV (Refinance) | 160,000.00 |
| Project Length (Months) | 2 |
| Interest Rate | 14% |
| Total Points | 2 |
| Loan Down Payment | 20% |
| Advance on Purchase + Rehab | 100% |
| Closing Costs % (of ARV) | 3.44% |
| Annual Property Tax | 2,000.00 |
| Refinance LTV | 75% |
| Loan Costs | |
| Purchase + Rehab Loan-Down Payment | 97,500.00 |
| Interest | 2,275.00 |
| Points | 1,950.00 |
| Total Loan Costs | 101,725.00 |
| Closing Costs on Refinance | 5,500.00 (3.4%) |
| Refinance Loan (@ 75% LTV of ARV) | 120,000.00 |
| Other Project Costs (Closing costs + prop taxes) | 5,833.33 |
| Loan Payback | 101,725.00 |
| Total Cash Back | 24,108.33 |
| Less Down Payment Paid on Loan | (20,000.00) |
| Net Cash | 4,108.33 |
| Down Payment | 20,000.00 |
| Interest + Points + Taxes | 4,558.33 |
| Rehab (Advance before lender inspection and draw) | 11,666.67 |
| Gross Cash Required (although will get some rehab back immediately) | 36,225.00 |
| Cash on Cash | 21% |