All Forum Posts by: Pankil P. Patel

No problem, I appreciate you looking into this. Thanks. 

Hi David,

I’m looking for a private money lender in Rhode Island. Do you offer services in RI? If not, do you have anyone you’d recommend?

I’m a seasoned investor and currently working on securing my first BRRRR deal. Let me know if you can help!

Thanks,

Pankil

Thank you Jaycee. 

Purchase Loan Details section would not allow me to select Down payment AND also loan amount. My scenario is that I am putting $200K of my own cash and bring loan of $550K to cover purchase and rehab cost. Do you know how do I input this value to get accurate numbers?

Deal Breakdown & Cash-on-Cash Confusion – Need Help!

I am evaluating a real estate deal using BRRRR calculator and need help understanding why my cash-on-cash return (CoC) appears as infinity (∞%), even though I have actual cash invested. Here’s the breakdown:

Financing & Investment Details:

• Total Project Cost: $750,000
• Purchase Price: $450,000
• Rehab Cost: $300,000
• Total Investment Needed: $750,000
• Private Money Loan: $550,000 (1-year term at 9% interest)
• My Cash Investment: $200,000
• Interest for Private Money Loan: $49,500
• Closing Costs for Private Money Loan: $0
• Closing Costs for Refinance: $27,000

Total Cash in the deal: $750,000 + $49,500 + $27000 = $826,500

Exit & Refinancing:

• ARV: $900,000
• After renovation, I refinance at a new loan of ~$675,000.
• This allows me to pay off the private loan (~$550K principal + $49,500 interest).
• After refinancing, I walk away with $75,000 in cash but still have $152,000 of my own capital left in the deal ($200K + $27K - $75K).

The Issue:

When I calculate cash-on-cash return, it shows ∞%, but I know I still have capital tied up ($152K).

What am I doing wrong in my calculations? Why is my CoC returning infinity when I still have money left in the deal? Any insights would be greatly appreciated!

Hi fellow BPers - I am in investor from MA and looking to purchase a 4-unit MF in East Boston area in the coming months. I would appreciate if someone could put me in touch with a local agent who specialize in East Boston.

Thanks,

Pankil

@Zac Ballin

Mind if I pick your brain for section 8? I am an investor from Ashland MA and looking into section 8 tenant. Please let me know. Thank you!

@John Quiroz

Thank you for the advice. Yes this is part of our inspection check list!

@Troy Zsofka

Thank you for the advice and it is great to know that Hillsboro town has been good investment tool for you so far. Do you mind if I pick your brain for rents advice? I will send a private message and would appreciate your feedback.

As far as the property value, yes it is a bit steep at $100k per unit but there is a 5th unit that I could pull the permit, rehab and rent it out, potentially increasing my cash flow so I jumped into this and the property is under agreement at below asking!

I appreciate your feedback!

Pankil

@Shane Moynihan

Hi Shane - yes I agree the rents are lower than other metro areas of NH but it definitely fits my strategy for now. Since current rents are lower for the area, I might be able to up my ROI potentially making it a great buy and hold. I have decided to purchase this property and it is under agreement!

I appreciate the feedback from fellow BPers.

Thanks again,

Pankil

@Shawn Clark

Thank you for sharing the news about dominos. It is always good to see a town adding more businesses that means that it is up and keeping. Wouldn’t it be nice to have Walmart as well. More jobs and more tenants to attract in the area.

Thanks for your feedback!