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Updated 5 days ago, 11/22/2024
Modeling question - Are my numbers off?
Is my modeling wrong?I'm running BRRRR deals through my modeling sheet and none of them ever come with positive cash flow. (All from the DFW area)
Attached is an expense chart for a house purchased at $250k with a $360k ARV, refinanced with a 6.65%, 20yr fixed rate. Debt service on this is $2308/mo which seems really high. I'll admit I do build in a lot of cushion (something I learned from my first flip deal) so I account for every possible expense.
The other picture (with the green boxes) is the return for possible scenarios - MTR, STR, LTR - but all have negative cashflow.
What am I missing?