BRRR strategy question on property analysis

[Stephen Waldroup]

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

I have a question on the BRRR strategy on this property. If the ARV is 120k and I can get a loan for 80% I'll get a check for 96k correct?

[Nicole A.]

Basically, yes. So you'd need to adjust your calc report for a bigger loan than it shows unless you really plan on leaving $19K in the deal.

[Stephen Waldroup]

So i changed it to so I had no money in the deal. Made the loan for 85k cashflow only 22 dollars. But then i would also have 11k to put in another deal with all my money back correct?

[John Leavelle]

Howdy @Stephen Waldroup

Your basic assumptions are correct.  You must decide what your investing criteria is going to be and stick to it.  Do you always what 100% of your cash back or is it OK to leave a certain percentage on occasion?  What is your minimum acceptable Cash Flow?  Are you willing to leave money in to reach the minimum?  

[Stephen Waldroup]

@ John Leavelle

I definetly don't mind some money in the deal. If it can bring close to $100 dollars a door and at least 10% cash on cash return. I don't feel like that is unreasonable. I'm still trying to get my first deal. I put an offer on the house that I analysis and it was declined, but I know there will be another that I'll get.