Please help! Sample BRRRR analysis

[Travis White]

Thanks for clicking in here :)

This is a sample analysis of a flooded property here in Houston. I want to make sure I'm getting my head around these deals in the right way. I've linked my BRRRR calculator output PDFs here and at the end of the post.

Target property - 4 bd, 2.5 bath, 3300 sq ft

- Purchase: $139k

- Rehab: $45k

- ARV: $235k

- Rent: $1800

Project Cost - 186.5k

- HML Loan 139k

- Rehab 45k

- Points (4) - 5560

- Closing costs (estimated) - 2500

Refi

- Loan (30 yrs @5%) - 164.5k

- Closing costs - 1500

- Cash left in deal - 29k

Cash flow

- Pre-refi - -$2200

- Post-refi - $292

CoC - 12.%

Some questions:

- Can someone help me out w/ calculating CoC? I've tried to get myself but I'm getting stuck.

- It looks like I need to account for holding costs like utilities and construction insurance on my own. Does that sound right?

- Does the BRRRR calculator have a way to add additional financing? My HML will loan 70% ARV which could help w/ rehab costs and would leave less money money in the deal.

- I could put more cash into this deal but I have some questions doing that. First, would it be right to think that I could do that analysis by adding a down payment to my HML? Adding extra money would make my CoC go down but I would save on financing costs. Are there other considerations? Would it also result in more cash being left in the deal?

- What ratios, numbers, metrics etc etc etc do you guys tend to focus on? Right now, I'm just tending to look at positive cash flow and 10%+ CoC; what else does can I look at that will help me better understand deals?

- Would you do this deal? By the looks of the numbers, it seems good to me.

- And the best one, what am I not asking about now that I should be? What am I not thinking about that I need to be?

Again, thanks so much for reading through my sample analysis here!

BRRRR Calculator Report