BP BRRRR Calculator Assumptions

[Christopher Mooney]

Hi all,

I just got the monthly BP Pro membership so I can analyze properties. I'm just getting started, so don't have too much real data for inputs. Just using any resources I can. But would love people's thoughts on these assumptions for a quick initial analysis before proceeding to the next step:

Closing Costs = 3%

Hard/Private money Interest Rate = 11%

Points charged by lender = 1

Other charges from lenders = 0

Refinance rate = refering to Bankrate.com

Other refinance fees = 2% of refinance purchase price

Typical cap rate for your area = I leave it blank

Electricity = $0

Water = $50/month per unit >> I spend about $35/month at my personal residence for 2 ppl. Rounding up to be conservative

Maintenance = 8% >> older housing stock in Cleveland, OH
Vacancy = 5%
CapEx = 5%
Annual Income, PV, Expenses growth = 2% >> i'm more bullish but keeping these numbers to be conservative

Sales expenses = 2% >> no logic here haha

Any thoughts, input, suggestions are greatly helpful!

[Andrew Postell]

@Christopher Mooney does the calculator only allow a percentage for closing costs?  if you are buying a $100,000 home it is unlikely your closing costs will be 3%.  Have you spoke with any lenders in your area to get these numbers formally?  I would NOT use the rates on any website as ALL websites use primary homes to advertise interest rates.  It should be free to get prequalified so just ask a lender directly.  We usually don't have water costs with duplexes...sometimes with quads though.  I feel that 18%-20% for capex/main/vacancy is reasonable.  Whenever you sell a property you will need to factor 8% costs (3% to each realtor and then 2% in additional costs)