BRRRR Deal Analysis - What Am I Missing Here?

[Nicholas Anderson]

Hi Everyone,

For some background, I have access to short-term private money at 3% and long-term financing for 80% of LTV at 7%. Based off of the private money I have access to, I would be able to get into a deal with none of my own cash. My goal here is to find a property to BRRRR. The problem I'm having is that after I refinance, the rents aren't supporting the refinanced loan's P&I + my Expenses. Even when I'm using absurd purchase prices, leaving no money in the deal doesn't seem to work. It goes without saying that a "Cash Out" refinance would definitely not work. Can someone with some more experience here "diagnose" what is going on with my numbers? Thanks in advance for the help!

Notes:

• - I am baking all of the rehab, closing costs, and purchases prices into the same line item to reflect the PM and HM loans
• - For the sake of this deep dive, please assume rehab costs and ARV are accurate
• - I understand that in a few of these rents are somewhat low, but even in those cases substantially higher rents wouldn't solve my cash flow problems

https://www.biggerpockets.com/calculators/shared/1257767/ee02b620-98f7-42eb-b5bc-e3c4df4f24de

https://www.biggerpockets.com/calculators/shared/1257767/837aaf4f-4a55-48c6-a3f3-fa84ff3de55b

https://www.biggerpockets.com/calculators/shared/1257767/2ea102f2-2f17-4b58-a7df-cc23f63caa3b

https://www.biggerpockets.com/calculators/shared/1257767/d9f0e556-f161-47ad-8669-6efd017b8c8d

Thanks,

Nick

[David Ripplinger]

@Nicholas Anderson If your plan is to hold and rent, and the cash flow doesn't work out, it's not a deal. Don't do it. If it's really hard to find a good deal in your area, consider investing long distance. I'm in Utah, and I plan to invest out of state because everything is inflated in my area.