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Updated over 5 years ago, 07/25/2019
- Rental Property Investor
- Dubuque IA / Janesville, WI
- 17
- Votes |
- 44
- Posts
BRRRR Calculator Misconception
For all of you BRRRR calculator masters out there, I have a quick question for y'all.
When it comes to "Total Cash Needed at Purchase" I believe this is deceiving. At first I was thinking all i needed for actual cash to do the deal was that amount, but then i looked over everything again, and my question is:
This number is the number needed to just acquire the property correct? Not the amount needed of your own money for the whole project. You would need to add up
down payment+closing costs+holding costs during rehab+loan points/fees+Interest payments per length of the rehab+any other monthly expenses (city garbage)=Total cash needed to run the deal
I'm trying to figure out what all needs to be included to calculate the total cash i need to bring to the deal in order to get it refinanced and have the tenants start paying the operating expenses.
Thanks for clarifying for me, I am really trying to get the ball rolling here.
-Logan Splinter