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Updated almost 8 years ago,
BRRRR calc questions
Hey BP members!
Question about the BRRRR calculator. I am messing around with it to see different results and had a question.
Example: I buy a house for 100k with all cash, put 20k rehab costs and i put in ARV of 200k. When i go to refi part for the loan, I put 70% of the ARV? So in this case for the loan amount I would put $140,000K? Monthly cash flow goes from $850 to $250 after refi, COC goes from 10% to inf%? What does inf% mean? and i would have invested $0 after the refi. Meaning i would get everything I put in back?
Then just to see, i edited and change the ARV from 200k to 250k, numbers pretty much stay the same except monthly cash flow after refi is almost negative. The property is worth more but I would be receiving less rent? Does that have to do with the loan amount I am taking out? If so how do you fix my number?
Thanks,
Ryan