BRRRR Report Fail - Necessary Update Suggestions
I think the BRRRR report is a good place to start, but it is missing A LOT of the important metrics the pros (like @Brandonturner ) use to define successful deals. So I find it really lacking for what it portends to do.
1.) Refinance Numbers: There are no fields that define what the expected LTV is. This impacts your cash out number(s) significantly. If it bank gives me 80% LTV vs. 75% or 70% LTV my cash out will change. As will my monthly net return.
2.) Cash Out After Refi: This is NO WHERE. It only shows you your cash IN after refi. So If I do a cash out refi after hard money, and net positive, you have to run those numbers separately. If they address #1, then it should/would yield #2.
3.) The Inf% is kinda lame. I get that its is good thing, and a "Yay!" when analyzing a deal, but its a poor substitute for the above.
4.) Estimated Tax Adjustment: In many places, your taxes change based on the value of the home. But there is no second value to input new/adjusted tax assessment. I know this would be a projection, but most county/city tax rates are easily found, so if you know you'll be assessed 1.5% tax on value, an you buy a house that was taxed at $100K and ARV is $300K the tax change is significant and should be accounted for. If you dont want to estimate it (or your county does assessment every 10 years or whatever) you can leave it blank.
I'm sure there is more. But the above is really important. Considering that cash out at the end is one of the goals that Brandon and other pros harp on as key to maintaining cash on hard for the NEXT deal... I find it really frustrating that I have to run these numbers separately as apposed on the tool(s) that I'm paying for here.
What else am I missing?
Jason
3 Unit Rookie , trying to add 2 in the next 30 days