[Calc Review] Help me analyze this Brrrr deal

Member since 2025 · 1 post · 0 votes

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

HI Friends,

I'm a newbie to brrrr'ing and investing. What am I not seeing here - how are my monthly expenses over 10K? Something is wrong and I'm not seeing where I made an error....grateful for any help! Trying to make a lowball offer on a bank owned duplex. Also I am probably lowballing the arv - if I was to flip the property it would be valued at $500k - I've just been playing a bit with that number.

Thanks for any tips!

Nina

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William WhitleyBusiness Member
Accountant · TN · Member since 2025 · 144 posts · 91 votes
1y
Good evening, Nina,
If I am reading the report correctly, you are estimating monthly expenses for repairs at $11,000 per month, which indicates 250% of monthly income. Annualized, that $132,000 per year in repairs, plus other expenses. That’s likely what is throwing off your numbers significantly.
Renovation costs following a purchase are typically classified as capital expenditures that adjust your basis for a property that is purchased as a long term rental property. Repairs on the other hand are typically operating costs that are for normal repairs associated with rental properties.
I hope that helps.
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Jaycee GreenePro Member
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
1y
Quote from @Nina Werman:

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*This link comes directly from our calculators, based on information input by the member who posted.
HI Friends,
I'm a newbie to brrrr'ing and investing. What am I not seeing here - how are my monthly expenses over 10K? Something is wrong and I'm not seeing where I made an error....grateful for any help! Trying to make a lowball offer on a bank owned duplex. Also I am probably lowballing the arv - if I was to flip the property it would be valued at $500k - I've just been playing a bit with that number.
Thanks for any tips!
Nina

Hi @Nina Werman, welcome to the BP Forum! I concur with @William Whitley's comments about the repair expenses. I typically see these (especially if the property is rehabbed) at around 5% per month. I also looked at your insurance, which seems low. The taxes at 18% seem high, but that could just be New York.
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