BRRRR Calculator help (Attempt 2)

[Miles Stanley]

Hello BP Community,

I have been studying the mechanics of the BRRRR calculator here on BP and i have a couple questions about a few of the output metrics that i cant determine how they are calculated.

1. Does the Calculator account for the holding costs before you get it rented/refinanced? i don't see how it does unless its indirect (via the "Time to refinance" and/or "Estimated Rehab Time" outputs). If it does, what is included in the holding costs besides the P&I, taxes, & insurance?
2. On the Refinance portion of the report, I cant seem to figure out how the "Total Cash Invested" is calculated.

Please help!!

Thanks for indulging my nerdyness.

I posted in the RE Deal Analysis and Advice Forum, but got no hits.

[Miles Stanley]

@Stephen Matson, @Suzanne Griffiths

i finally did figure it out.  I was missing the amortization that takes place during the months YOU are paying the mortgage while the rehab is happening.  

You take the Refi Loan - Rehab Costs - Refi Costs - Purchase Costs - Purchase Down Payment - Purchase Loan + Amortization that occurs during rehab period (viewed as a '+' because it increases your equity).

The calculator does not account for holding costs in the 'Total Cash Invested', but i think you will likely make this back during the initial rental period before the refi since the cash flow tends to be highers (bc purchase loan amount is less, lower P&I payments = higher cash flow). So its probably a wash a lot of the time. After the refi, the loan is likely higher (otherwise you messed up on the BRRRR) and the cash flow drops.

Thanks!