New to Real Estate · Rochester, MN · Member since 2021 · 7 posts · 4 votes
Hello BP Community!
I'm working through some BRRRR scenarios on the BP calculator and I'm having trouble figuring out how the "Total Cash Invested" is calculated. I tried to duplicate the number on a spreadsheet and can't come up with the exact number. The total cash invested in this example ends up being $2532.70. Here's the formula I'm using to try to duplicate that number:
Purchase Price + Rehab + Rehab holding costs - Rent period cashflow - rent period loan paydown - refinance loan amount = total cash invested.
I come up with $2929.00 when I use this formula, which is close but not exact. Is there another metric I'm not including or a metric that I shouldn't include? Any help or input is appreciated!!!
@Alex Hohenstein I don't use "rent period cashflow" nor "rent period loan paydown" in my formulas at all. By the time a renter is in the property, I'm already refinanced out. Also, don't forget you have closing costs when you do this technique. You need a 1st round of closing costs when you BUY and a 2nd set of closing costs when you are at the REFINANCE step. So based on your numbers you should I show $3,500 out of pocket and then just add closing costs twice and that should give you a more accurate portrayal.