[Calc Review] Help me analyze this deal (First Deal)

4 Replies

Howdy @Anthony Batten

I see no one has provided any comments.

This is my take on your Analysis. Your BRRRR calculations basically look good. However, there are a couple of questions and some things you left out.

1.  Do not forget to account for the Refinance loan Closing fees.  $2,000 is average.

2. Make sure you have included all your Holding costs in the Rehab estimate. These will include (but not limited to) Taxes, Insurance, Utilities, HOA Fees, etc., that occurs during the Rehab period and up until the property is fully rented. The BRRRR Calculator will automatically transfer any amount you have entered in the Cash Flow expenses (i.e. Property taxes). You will need to manually add any others (Water, sewage, electricity) .

3.  Your Acquisition Loan information is confusing.  Is this a Hard Money loan?  If so the points are probably more than $272.  It is normally a percentage of the loan.  2% to 4% at a minimum.  $549.44 to $1,098.88.  The monthly P&I is usually interest only.  Therefore, it would be ($27,472 x 6.5% = $1,785.68 / 12) = $148.81.  If my assumptions are wrong let me know.

4.  You left out Insurance in your Cash Flow analysis.

5.  What type of property is it?  How old?  What are the current rent rates and what are the Market rates?

Overall you did a good job on your first analysis.

John,

I would first like to say thank you so much for your help. I did forget to enter some things.  I have one question does the calculator take into account that I will no longer be paying utilities one it is rented.  Also, I took my repairs and vacancy down to 5% do to it being a complete rehab and the area is located near a military base and college.

I am using a Hard Money lender and I added in the points correctly but I didn't put it as interest only as it should be.

I did forget the insurance piece.  I am fixing that now.

The property is a duplex and the rent rate are anywhere between $675 and $900.  In some cases it is $1100.

Thanks again for your help.