All Forum Posts by: Drew Clayton

Thanks, @Tim Herman. That's accurate, and I know it in concept, but wasn't sure if the calculator adds those fields together or not. So if I'm understanding you correctly, I should just put the total loan accounting for all those variables in the purchase field and leave the rest blank? 

That's great help, Tim, thanks. I do recognize that the amount I'd be borrowing is crazy high (due to reno costs), and that kills the rentability, but was still using this property as a learning tool to get more comfortable with the calculator. It's crazy that even purchasing at less than half the value of a fixed-up property still can't make the cash flow work. The HOA would allow rentals, so maybe if I can cut the reno budget by a ton there's some hope. At any rate, it still looks good as a flip.

You point out that I have the BRRRR calculation set up with me only borrowing the purchase price, and that actually brings up another question I have about the way the calculator is configured. Since the purchase and reno fields are in one section, and the loan info is in another, is the calculator not assuming that the loan includes both?

View report

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

The deal I'm analyzing is a condo where even if I offer 43% of the ARV ($220k on a $520k ARV), the deal won't cash flow due to really high reno costs that stem from lots of damage and biohazard cleanup (it's bad in there, you guys). But no matter how I adjust various numbers, I can't seem to make the deal work, and I'm wondering if I'm just not understanding what certain fields on the BRRRR calculator should have in them. Admittedly, some of this is on me for just not having enough experience with some of the BRRRR concepts too.

I'm a newbie still getting my head around the calculators, and have noticed some of the fields aren't super clear about what they entail, so I'm hoping more-experienced folks (and maybe some BP employees) can clarify for me, and eventually add more detail to the ? tooltip text and some new features to the calculator. 

• Are the holding costs calculated for you in this calculator (adding in your insurance, initial mortgage, HOA, utilities, etc.), or should I be adding them into the renovation costs?
• Is the Amortization period for the initial loan on a BRRRR usually a normal period like 30 years, or do we put in a lower number, since we only hold that loan for like six months? 
• If you don't want to take the full 80% of equity out during the refinance, is this minimum you'd refinance for adding up the purchase price + renovation & holding costs?
  
• Wouldn't it be great if you could just edit numbers inline on the results page, similar to how you can on the fix & flip calculator, instead of having to edit and go through the whole thing page-by-page? 
  

Drew Clayton

View report

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

I'm a newbie still getting my head around the calculators, and have some questions to make sure I'm using it right:

• • Is the Amortization period for the initial loan on a BRRRR usually a normal period like 30 years, or do we put in a lower number, since we only hold that loan for like six months? 
  
• • Are the holding costs calculated for you in this calculator, or should I be adding them into the renovation costs?
  
• • If you don't want to take the full 80% of equity out during the refinance, is this minimum you'd refinance for adding up the purchase price + renovation & holding costs?  
  

Thanks, @Uriah D.. Who do you hire to tear it out? Would a GC even go inside the place with a significant mold issue, or do you have to hire a mold specialist to do that demo so you're sure they have proper protection for their crew and tent off the area to limit spore dispersal? 

Nicky, that's great insight. I wouldn't have known about the clutter and low airflow causing the mold, but it makes sense in this house, as it's a hoarding situation. 

Thanks, @Evan Polaski. That sounds unfortunately like the kind of insight I expected RE remediation companies. But if the extent of it is as bad as I've heard, I'm going to have to go that route, because nobody without a full hazmat suit would enter the place.

We hired a remediation company for my uncle's house, because there was mold and water damage under the kitchen counter that had eaten away much of the wood over some unknown number of years. It ended up requiring ripping out the counter, cabinets, and cutting out part of the subfloor, and then running drying fans for about 3-4 days straight. That was >$7000, not counting the reconstruction costs, new flooring, cabinets, etc. for which we hired another contractor. Might they have taken advantage of us in that case? Possibly a little, but to have peace of mind for an elderly relative's health, it's worth it. 

I'm taking the approach of similar peace of mind to remove pathogens for renters.

From what I understand, the mold has taken over a wall in the living room, which says to me there's a leak in the bathroom pipes on the other side of that wall. So likely negative-pressure sealing the house, ripping out that whole wall (possibly including the studs), fix/replace plumbing, re-frame, drywall, paint. But I'm not sure how bulletproof mold remediation is, and whether the whole house is poisoned now from that amount of mold.

I'm considering buying an off-market home from an acquaintance, but it's a hoarding situation that reportedly (I haven't been inside for obvious reasons) has mold running up a wall. For extensive mold remediation situations like this, do they really get it all out, or is there risk that it could return or make future tenants/buyers sick? How has it gone right or wrong for you?