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Updated almost 9 years ago on . Most recent reply

User Stats

102
Posts
14
Votes
Chris Luksha
  • Contractor
  • Jaffrey, NH
14
Votes |
102
Posts

BRRRR Calc is slightly confusing...

Chris Luksha
  • Contractor
  • Jaffrey, NH
Posted

I just ran a property that I would love to buy if I can find the private money or possibly the hard money at the right rate and ran it through the BRRRR calc.

All looks great except when I look at the financial projections section I see the following...

50% Rule Cash Flow Estimates Pre-Refinance 

Total Monthly Income: $2,850 
x50% for Expenses: $1,425
Monthly Payment/Interest Payment: $600
Total Monthly Cashflow using 50% Rule: $72 

50% Rule Cash Flow Estimates Post-Refinance
Total Monthly Income: $2,850
x50% for Expenses: $1,425
Monthly Payment/Interest Payment: $556
Total Monthly Cashflow using 50% Rule: $869

Am I missing something or should the total monthly cashflow Post refi be that high?  I am onlu paying out potentially $44 less, so how did it go from $72 to $869 with only $44?

What am I missing?

Thanks,

Chris

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