How to determine price of BRRRR

[Kyle McCorkel]

How do you determine a good price to pay for BRRRR property? I know the rental analysis methods (determine NOI, cap rate, COC) and I know the typical flip equation (ARV minus repairs X 70%). Is it kind of a blend of the two? I was thinking use rental analysis to determine ARV, then treat it as a flip, so subtract repairs then multiply by 70%. Then I started going cross eyed.🙄 The property is a 3 unit, currently fully rented, but looks like it needs about $15k in cosmetic and mechanical work. I want to get seller help for most if not all of the repair cost, and work through the repairs/rehab as units turn over. Good news is, it will cash flow from day 1.

[Matthew Fields]

Don't forget to multiply by .7 THEN subtract repairs. It's a totally different number. You don't want to only use 70%of your repair estimate.