When calculating COC ROI and Cashflow? Help please

[Joshua D.]

So when using the rental property calculator on BP. I notice when i pay more cash for the property my COC roi goes down obviously and my cashflow goes up. Now when i buy my properties i use lines of credit from my existing property and fix them up mostly with my rental income. Does a line of credit count as cash or would that be a loan on the calculator side of things? When doing the BRRRR strategy is that the same thing as getting a line of credit on a property? Thats all i have been doing is getting lines of credit off my rental properties for new purchases. My first 2 properties were cash then after that got lines of credit to purchase 6 more and still have the availability to take lines of credit on those houses out. When i bought the first 2 i bought them way below market value. If need more info let me know wondering if im doing something wrong here?

[Antoine Martel]

Joshua.

Great question.

1. Line of credit is not cash, its a loan and your paying an interest rate on that $.

2. The BRRR strategy is not a line of credit.

I do the BRRR strategy as well across the USA and have just been putting mortgage on the property and not doing the LOC option. Interested to learn why you chose the LOC option other than just getting a mortgage on your rental properties.