Akron Ohio BRRRR - Help me analyze this deal

[Caleb Ryan]

View report

Hello everyone,

I'm looking for some tips on running a BRRRR analysis. Attached is one I just ran but I'm not 100% confident I am taking everything into account. One of my main questions is what % of the ARV are you looking to purchase a property? For example: In the attached property I expect the ARV to come in around $115,000 and I ran the numbers with a purchase price of $65,000 (15,000 below list price). Is this way off base, or am I close to what I should be shooting for? According to the BP rent calculator I should be able to rent it out for around $1,000 per month (being little optimistic).  I have no idea how to accurately calculate rehab costs so I put $40,000 as a guess. Any tips are appreciated. Please see attached report as well as the redfin listing link below.


485 Saint Leger Ave, Akron, OH 44305 | MLS# 4337968 | Redfin


*This link comes directly from our calculators, based on information input by the member who posted.

[Blair Wilson]

Hey Caleb, I currently do BRRRR deals in Akron. Below are a few steps I would take:

1) On the % ARV question, Purchase price = (ARV*LTV Refi) -All Expenses (Rehab, holding cost, closing cost, etc). For LTV Refi, I typically use 75%. For you analysis, the actual loan amount with an ARV of $115k and LTV of 75% will be $86.25k. You will plug that into the refinance loan amount instead of the $115k. When you rerun the numbers, you purchase price is going to be lower than $65k.

2) A few notes from the pictures: Basement looks wet ($5-10k to fix), water heater looks older ($900), roof repair ($1200), cosmetic updates ($15-$20k). Assuming the bones of the property are good (Electrical, plumbing, HVAC). 

3) Make an offer based on your BRRRR analysis contingent on inspection. During this inspection period, have a property inspection and get actual contractor quote.

4) Adjust offer price or move forward with existing contract. 

Good Luck, 

Blair