Trying to Understand my BRRR numbers

[Kenny Kuramoto]

I want to see if this is how people analyze their property. 

PP= $100k

ARV = $175k

Rent = $1400

Rehab Cost = $40k

Property tax = $500

PM = $100

Utilities paid by Tenant.

Is this right?

Cash Purchase Closing Cost + Rehab + Refi Closing Cost= Total Cash invested - 2k+40k+6k = $48k

$175k*75% =  $131,250 New Loan Amount

PP+Closing+Rehab = $148k-$131k = -$17k. Short $17k means unsuccessful. Is this correct?

For the Cash Flow

$1400-873(Refi Loan)-$100(PM)-$100(Insurance)-$210(CapEXMaint)-$100(Vacancy) = CashFlow $17. 

Too low. 

Is this a good rough draft?

[Nathan Grabau]

You don't need to get all your money out for the BRRRR to be successful. You got the property with less than 20-25% down, and have almost 50k in equity from 17k.

Cash flow being so low is not great, but with rates where they are we probably have to lower our standards a bit for cash on cash returns and enjoy the deals that do pencil. Your activity is generating 33k in equity, plus positive cashflow, which will improve over time, especially if you refi soon. 

This also depends on the market you are in. I have different standards for what my Colorado BRRRRs get in cashflow vs my Iowa BRRRRs.