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Updated over 3 years ago on . Most recent reply
Newbie BRRRR return question
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
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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