Analyze this deal please - not sure if I'm inputting correctly!

[Melissa Dinas]

I'm still trying to get the hang of these calculators. I'm analyzing many deals daily but I'm not sure I'm inputting the correct information. Will you help me by looking at an analysis I did and telling me whether or not I got it right? 

I'm using a hard money loan and planning to BRRRR so that's the calculator I used. Here's the link (available until 5/3/18) and I've pasted the photos below.

Thanks in advance!!

[John Leavelle]

@Melissa Dinas

I am old fashioned. I like using my brain, pencil and paper to do initial ruff calculations. I do not use any of the BP calculators even though I find them quite useful. I use a cloud based calculator/spreadsheet that was developed by a BP member. It's called "Rehab Valuator " . The problem I have with the BRRRR Calculator is it doesn't account for utilities that tenants will pay for after you have the property rented. Howe, guess who pays until then? You do! Especially during the Rehab period and up until the property is fully rented. It will transfer expenses you include in your Cash Flow analysis. Therefore, you need to include those holding costs, that arenot in your cash flow analysis, into your total Rehab number.

Wow, 9.9% Fee!  That’s expensive money.  Is that identified as points, fees or both? 7 years seems like a long time for a Hard Money Lender.  Do they require Principal and Interest or Interest only payments until the loan is paid off?  You do not enter it as a “Cash Purchase “.  It is a loan!  As far as a 20% Down payment goes it will depend on what the lenders requirements are.  Will they finance 100% or do they require skin in the game (deposit)?

Yes, Management. PM stands for Property Management. When analyzing Buy and Hold deals (including BRRRR) you should always include PM as part of your expenses. The reason is if you plan to grow your business you may eventually want to use PM services. If you choose to self manage and do not want to pay yourself that's up to you. But, if you want a PM in the future and you did not include it as part of your analysis you may not have be able to afford it at that time.

You did not post the new report.  Or at least it’s not here.

John