[Calc Review] Help me analyze this deal

2 Replies

Hey guys. First time running numbers on a BRRRR. I'm a little confused. When I refinance, shouldn't I be getting some cash back on this deal? Does this calc tell me how much? Maybe I'm missing it. Anyway, overall is this a good deal? Think I'm just not sure how to read it.

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey @Earl Nurse .  I'll be honest, I use all my own tools versus the BP calculators.  When I look at this report, I don't see where you'd be understanding your cash out of this.  Perhaps it's wanting to have you calculate that out yourself because one big question is how much the loan amount is for and how much you still owe on it.  

Some questions to think about though as I look at this and just curious if you've though about it. 1) Is the loan interest rate accurate for you on this being a rental property? It may be higher. 2) I think your loan fees are too low, unless the loan interest rate is higher and you're getting some lender credits. 3) Is the refinance loan amount $145,500 after equity is maintained? The equity that will presumably have to remain will be 20%, so if the ARV is $145,000, then the refinance will be for $116,000.

Other notes I have in mind but up to you. Your repairs budget is possibly low, but could be somewhat accurate depending on the rehab.  The 1% annual increase on expenses is low, I'd mark that at a greater increase. Don't forget your carrying costs in the estimated rehab time (if not already part of your $20k estimate).   

With your initial loan being $88k, $22k down and $20k repairs, you'll be pulling out $145,000-$116,000 = $29k in refinance.  So, you'll recapture some, but not all, leaving about $13k of your cash in the deal.  

I hope that helps.

That helps a lot. Surprised the BRRR calc wouldn't calculate the cash out of the refi since that is that is the key part of the method. This deal is already off the market but this was a good exercise.