BRRRR: Calculating Mortgage Payment

[Daniel Mendez]

Good afternoon BP,

So i am looking to purchase my first investment property at the end of the year.

I had a question in regards to estimating the mortgage for the investment property.

When calculating on how much cash flow will be do I estimate the mortgage payment to be at what the house is being sold for? Or the ARV of the house?

For example, say I purchase an 80,000 home. The mortgage will be say $800. Rent around the area would run for $1,000 hypothetically speaking. Once I repair the house it is now worth $140,000. I refinance the loan to $140,000. Now my mortgage payment is $1,200. Well now my cash flow will be in the negative. Am I right?