Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

Account Closed
  • Rental Property Investor
1
Votes |
7
Posts

Newbie BRRRR return question

Account Closed
  • Rental Property Investor
Posted

I am a relatively new investor (3 years in and 12 doors). It has been a casual affair for me but now looking to ramp up.

I am having difficulty getting an ROI that I could compare to other investments (like Stocks, CDs, etc.). I basically take all the money I put in, minus out all of my expenses and do a simple ROI (in-out)/out and that works great except for the few properties where the amount of the loan was actually more than I have in the property (I.e. I actually cash out). In that case the denominator of the equation is 0 or less than zero.

In that case how do I figure out the ROI (if zero I get a divide by zero error and if negative return if less than zero).

Any help much appreciated!

Most Popular Reply

User Stats

897
Posts
547
Votes
Jared Hottle
  • Real Estate Agent
  • Cedar falls IA Waterloo, IA
547
Votes |
897
Posts
Jared Hottle
  • Real Estate Agent
  • Cedar falls IA Waterloo, IA
Replied

Sigmund. I think you are inadvertently showing us why BRRR investing is possibly the greatest return on your investment. That is why so many champion the strategy because if done perfectly you will have an infinite return on your money. You hope to never leave money in the deal. Now realistically it means you just get the money you put in back out which allows you to supercharge your portfolio because you are not needing to save 20% for a downpayment for each property.

  • Jared Hottle

Loading replies...