Pulling my hair out! I need help analyzing my first property!

[Logan Aardrup]

Hey BP family!

I have been researching and learning about real estate investment on and off for the last 3 years. I recently sold my stake in a rental property that I was part owner with my parents on and now I want to get my money back to work.

I have am working with a realtor in my area to locate multifamily investment opportunities and I think we have found one! I am having trouble interpreting the BRRRR calculator results and would really appreciate some veteran help.

If there is anyone out there who can help me dig deeper into this deal your time and expertise will be greatly appreciated!

Questions I have:

1. How am I supposed to know all the loan information before I have the loan?

2. How do I estimate what I am going to refinance for? Is it just pulling comps? What if there are no good comps?

3. Is there anything I am missing?

*I have estimated some of these numbers such as the purchase closing costs and ARV. What do I need to do to get more accurate numbers there?

View report

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

[Steven Foster Wilson]

Hi @Logan Aardrup , Each market differs as far as generalizations. For example in the Columbus Region for a 30 year investment property typical numbers look like:

4.8% interest rate. 20% down. 1-2% cost for closing fees

This of cours varies drastically across the board. But it would be safe to assume the following. You should start calling some local banks and CU's to get more specifics.

As for getting an accurate ARV number, this is one of the most critical items and can make a deal bust if calculated incorrectly. For Dwellings 1-4 units, you need to pull comparables. Properties near by with similar finishes and a similar layout. (With my Refinance I actually pulled comps I wanted and gave them to my appraiser. I also walked with my appraiser as he did his report to make sure he knew all the upgrades I had made).

For 5 units plus the appraiser will most likely use NOI*Cap rate to evaluate a fair market price.