Rental Property Investor · Clarkston, WA · Member since 2019 · 1 post · 0 votes
How do I enter BRRRR numbers on a property that we inherited that has a loan balance of 71,000.
he owed 71,000
it needs 30-40,000 in rehab to flip and about 20-30,000 to rent which we have cash to pay for.
comps are around 140,000
we are just paying on his loan until we get the rehab done and then will refinance and take out what we put in for the rehab.
I am trying to compare BRRRR and Flip and cant figure out how to enter in the 71,000 that we are assuming for now. it keeps calculating as if I am taking out a loan.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
I'd put in the purchase price as what you would net if you sold it in present condition. So it has an ARV of $140k needs $40k and some profit if you were to sell on the open market so $15k and you'd need to pay realtors 6% ($9k) plus whatever closing costs. So it probably has a current value to you around $75k which after the loan doesn't leave you with a ton of room.