[Calc Review] Help me analyze this deal

[Rick Sepulveda]

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

Hello everyone.  I have been looking to buy my first BRRRR property, but I do not know if I am reading the numbers correctly because I am so green.  Can someone look at this and let me know what you think about it?

[Grant Thompson]

Rick,

It appears that based on your numbers this isn't a BRRRR. The quick and dirty formula for a BRRRR is

Purchase price = 0.75 * ARV - Rehab Costs

In your case, you would need to acquire the property for ~$156.25k to make it a complete BRRRR deal.

Side note, rehab costs are very hard to estimate so make sure you verify that estimate and/or allow for a significant margin of error in your calculations.