*This link comes directly from our calculators, based on information input by the member who posted. (Buy and Hold)
I ran the report as a Rental and the numbers looked great with very conservative numbers. I ran the report as a BRRRR and the numbers look horrendous. Can someone explain to me where I am going wrong?
@Gregory DeRosso look at your mortgages. one is $116000 and the other is $200000. Rental property you have $73000 of your own cash invested. Brrr you have no money invested. Unlikely you can find a lender that will cash out refi higher than 75% and interest rate will be most like in the high 4's or low 5's. Don't know if you can find a HML that lets you put only 5% down at 8%. Don't think your numbers are conservative. Capex: roof $7500/25 year life span= $25 per month. Floors 1000sf per unit @ $5 sf= $5000/ lifespan 8 years= $52 per month for 1 unit or $104 for both. For 2 items I have already exceeded your capex budget.
@Gregory DeRosso look at your mortgages. one is $116000 and the other is $200000. Rental property you have $73000 of your own cash invested. Brrr you have no money invested. Unlikely you can find a lender that will cash out refi higher than 75% and interest rate will be most like in the high 4's or low 5's. Don't know if you can find a HML that lets you put only 5% down at 8%. Don't think your numbers are conservative. Capex: roof $7500/25 year life span= $25 per month. Floors 1000sf per unit @ $5 sf= $5000/ lifespan 8 years= $52 per month for 1 unit or $104 for both. For 2 items I have already exceeded your capex budget.
Thanks for the input. Agree with the Capex, ingenious on how you broke that down. I have always strictly have analyzed and worked as a buy and hold but I have someone who is willing and itching to do the 8% so I figured I'd give the BRRRR a shot. I just didn't understand why my numbers were so fudged. Like Yoda says .... You must unlearn what you have learned.