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Updated over 5 years ago on .

User Stats

72
Posts
20
Votes
Logan Vierstra
  • Investor
  • Sioux Falls, SD
20
Votes |
72
Posts

Problem with the BRRR calculator?

Logan Vierstra
  • Investor
  • Sioux Falls, SD
Posted

I noticed that in the BRRR calculator that the holding costs aren't added into the 'total cash invested' section.

Isn't that a problem?

I've used the calculator to analyze a lot of properties and I just noticed when I was using the BRRR calculator, that the only places holding costs show up are under the 'rehab period' tab, and in the 'analysis over time' section, it shows that you loose the holding costs in your first year of cash flow.

But it isn't accounted for in the refinance section, and it isn't accounted for in the total cash invested. That has thrown off my potential profit numbers by the amount of the holding costs on almost every property I've analyzed. 

Is this my mistake?

Or is it a problem with the calculator?