Calculating BRRR COC ROI and analysizing my first investment

[Alex D'Anjou]

Hi all,

My wife and I bought a condo in metrowest Boston in 2020 just as covid was starting and I'm now trying to check up on my actual investment return and need some help calculating my return and potential suggestions on what other numbers/calculations to look at.

Specifically (but not limited to), I'm trying to figure out my COC ROI. Given this is a BRRR what I'm unsure of is now that I'm ready to refinance, I can get $164,000 loan (Which means I get all my money out + $14,000, which is great!) but that means my COC ROI doesn't calculate properly because it is a negative number. Any ideas on how to handle this?

What other metrics should I look at? I've heard of IRR but not entirely sure how to run the numbers on it.

Quick parameters of the deal:

2 bed, 1 bath, 770 sq feet.

Purchase price: $132,000

Repairs: $18,000 (roughly) - New kitchen, bath, flooring, and paint - most work done by me directly (not paying myself)

Total Spend: $150,000 (all cash)

Current property value (with crazy covid house value price hikes over the past 2 years): Approx $205,000 (YAY!)

Property is now what I consider a Class A- property in a B+ location. (the town it's located in is pretty suburban so not a ton of demand for rental units (and not a lot of rental units available) but good schools, great community, super safe, and the lack of rental units actually creates enough demand.)

Rent: currently $1,600 per month with tenant leaving end of April. This is below market as they are friends who needed a place to stay while renovating their own house. Expect to raise the rent to market $1,900-2,000 for the next tenant.

(Note: Mortgage is not currently active as I haven't closed on it yet but I put in payment for analysis purposes).

Any help and/or suggestions on what to look at would be appreciated!