How to use the BRRRR calculator if financing rehab costs

Question

When I enter estimated rehab costs into the BRRRR calculator, it adds that amount to "Total Cash Needed At Purchase" in the results. But what I want to finance the rehab costs? If I use hard money or a line of credit to finance the rehab costs I'd like to know how it affects the bottom line. I don't see an option to factor that in.

Has anyone figured out how to factor that into the BRRRR calculator?

Gary Mendrin · Answer

Yes, I tried that. That works if it's financed with the same terms as the purchase loan.

Jon Crosby · Answer

HI @Gary Mendrin, sorry if I'm over simplifying this, but can't you just throw the repair costs into the purchase price and put zero for repair costs?

How to use the BRRRR calculator if financing rehab costs

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