Using the Rental calculator to analyze multifamily properties

[Jeremy Roach]

Good morning friends,

When I'm using the Rental calculator to analyze 3-unit multifamily and the strategy I'm implementing will be house hacking/ BRRRR. Do I calculate only 2-unit rental incomes since i am going to be living in the third? Or do I run the number as if I were renting all 3 units showing income so that my numbers will be correct n a year once i refinance and repeat? I'm trying to get my cash on cash to 12% and what would you recommend I should be shooting to make on monthly "cash flow" in the analysis? Considering that I will be living rent-free. I'm hitting a wall and going to meet with the realtor to get more concrete data today.

Thanks,

Jeremy Roach

[Jaysen Medhurst]

@Jeremy Roach, you want to run it both ways. That way you know how much you'll be paying when you live there and what the potential cash flow will be once you move out and convert it to a pure investment property.

One mistake people often make is not figuring for management or the total amount of repairs / CapEx. You figure those based on Gross Scheduled Rent (GSR), including what your unit would be bringing in.

Most investors like to see at least $150/door/month cash flow after all expenses and debt service. If you're doing a BRRRR and the numbers work out correctly, then your ROI is infinite, since you pull all of your cash out at refi.