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Updated about 4 years ago,
How to know if a BRRR deal is good?
I have been studying and reading yall's posts for over a year and have learned a lot about how to analyze a good deal with the traditional buy hold an rent method. I know about the 2% rule, cash ROI and other metrics of determining if a buy and hold house is worth it. However I haven't learned about the BRRR method in detail. I know the basics, and I know how to use the BRRR calculators online but I really just need to know how to analyze if a BRRR is a good deal. Here are some basics on the deal:
Asking Price: $65,000
Offer Price: $50,000
After Rehab: $85,000
Rehab Estimate: $10,000
Rent: $850
Commercial Loan: 20 year, 20% down, 5.25% interest
After Refi Loan: 30 year, 20% down, 3.5% interest