BRRR Calculator and HELOCs

[Bill Dengler]

When using the BRRR calculator under the "Purchase Loan Details", you can choose either cash or financing. I plan to use a HELOC to pay for the entire purchase. To get an accurate estimate, what inputs should I use? Do I just check off cash, but then what about the financing rates on the HELOC. If I choose a down payment, then I can only choose up to 50%, but I am putting 100%. I just want to make sure I get the math correct before making an offer on my first deal. Any insight would be really appreciated.

[Jason D.]

I would enter it in as financed. You'll be making payments until its refinanced so you'll want to include those payments as holding costs.