[Calc Review] Help me analyze this BRRRR deal

[Mike Williams]

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*This link comes directly from our calculators, based on information input by the member who posted.

This is my 1st BRRRR deal, and I'm trying to figure out if I'm analyzing this correctly. I'm going to be assuming the loan (they own the dept, I own the deed, and keep the existing loan in place.) The existing loan is 93K. Property is worth, at the very least, 160K after repairs. Needs about 25K in rehab. Am I running these numbers correctly? Thx in advance!

[John Leavelle]

Howdy @Mike Williams

I would not do this deal as you have it currently.

 Why do you want to trade a loan with lower interest rate and lower mortgage payments for one that is higher in both instances.

I think your Cash Flow may be a little optimistic.  

Did you include Holding Costs in your Rehab estimate? Will the property be vacant during the Rehab? If yes, you will have to cover monthly expenses such as mortgage payments, insurance, utilities, HOA fees, etc. That can add up over a 4 month Rehab period and up until the property is fully rented.