Makes since as a rental, but not has a BRRR

[Robert Howard]

Ok, I have been using the BRRR calculator, but the Property that I'm analyzing its working out. I have posted the link below. Could someone please look at it and tell me what mistakes I am making. I would think if it works out as a rental property that the BRRR would work too!

https://www.biggerpockets.com/calculators/shared/577125/ece4e031-745e-4f6c-b8ce-03b84488b170

[Andrew Postell]

@Robert Howard there's some lending concepts here for you to be aware of that I think would help out your math. To refinance a conventional loan you are limited to 75% of the After Repair Value (ARV) on the home. Also, a cash out conventional loan limits your "Loan-to-Value" at 75%. I would suggest modifying your loan numbers in Year 2-30 and that will help the numbers be more acurate. I have a hunch that you are looking to get more equity out of the home. Then you would need to gain access to a portfolio loan. Portfolio loans are non-conventional loans that are governed by each individual bank differently. It is essentially the banks own money. They can go up to 80% LTV...but they might have other things that are very different. They may only be a 20 year mortgage, which would make your payment higher because you are paying it off quicker. They may be a higher interest rate, which again would make the monthly payment higher. They might be an adjustable rate mortgage, balloon payment, etc. Lines of credit on an investment property also have similar structures. Some banks do not go over 70% LTV on a LOC, some will have a significantly higher rate, etc. Conventional loans are what most investors want to receive first since they are the lowest rate, a fixed rate, and can be amortized over 30 years. If you have more questions on this feel free to Private Message me. Hope this helps!