All Forum Posts by: Jason Kenney

Thanks for the recommendation @Anthony Chara.  I will also check out NARPM.

Thanks for the tip Kim.

Hello, Are there any multifamily investors in the Nashville MSA that can recommend a property manager with experience managing small multifamily/apartments (e.g. approximately 10-20 units)? I'm looking for a manager who is strong operationally and is willing to provide input during the underwriting and due diligence phases.  If anyone has had a great experience please let me know. Thank you!

@Andrew Postell - thanks Andrew! By the way, I've worked with Guaranteed Rate numerous times in the past to finance the purchase of some SFR investment properties. I've decided to change my business model to use the BRRRR method instead. But, Guaranteed Rate was great to work with!

Hey Brandon,

Thanks for your reply!  In the example, after the Cash-out-Refi,  I'm able to regain all my initial capital plus extract an additional 21K from the deal. This is where my confusion is on the COC calculation. Assuming I've done really well on the BRRRR and I'm able to both regain all my initial capital plus extract some additional equity from the deal, how do I calculate the return?  Is it simply (net cash inflow/net cash outflow)?

E.g. $150,000 (received from cash out refi)/$129,000 (my "all in" investment) = 1.16  The "1" means I've regained all my initial investment, so I've now got infinite returns and the ".16" would mean those returns are 16%?

Can anyone provide any guidance on calculating the cash-on-cash for a BRRRR?

If the property generates no cash flow until after the refinance, is it correct to use the 'Cash-out-Refi Amount' as essentially the cash inflow?

Based on the example below, is the cash-on-cash calculation correct?

Thank you!

ARV = $200,000
Cash-out-Refi Amount (75% LTV) = $150,000
Purchase Price = $90,000
Rehab Costs = $30,000
Closing Costs (4%) = $4,000
Carrying Costs (3 months) = $5,000

$150,000 - $129,000 / $129,000 = 16%