All Forum Posts by: Logan Aardrup

Great! 

Thanks @Kyle Smith

@Wayne Brooks


A couple more question, I have heard that a good rule of thumb for estimating capex is 8% of monthly income. Also, I have heard 6% of purchase price for closing costs?

Are those good rules to follow while estimating?

And do you have any other % rules you could share that help in the estimation process?

Thank you, 

Logan Aardrup

@Wayne Brooks Understood. Thanks for your help!

Wayne, 

Thank you for taking a look at this. I removed the capex and other expenses because I am following the Brrrrr method for this property and will be renovating the entire property before putting it on the market. This should allow me 3-5 years of avoiding most expenses. My plan is to dump all profits from cash flow into a "OH S***" account which will grow at $10,152 a year. By the time my property needs any major fixes I should have plenty of money in the "OH S***" account to cover the fixes. What are your thoughts on this strategy?

As for the NOI, I completely forgot that expenses do not include P&I!

Thank you!

Hey everyone, 

I am in the process of analyzing a potential deal. I have attached the link to the calculator below so you can take a look at the details. 

I am wondering how the calculator is coming up with the NOI? No matter how I try to run it I do not come up with the same numbers and am concerned I have the wrong equation for calculating NOI. I am under the impression that NOI = Income - Expenses. If I follow this equation I come up with Income = $49,800, Expenses on the low end = $34,356, which should make NOI =$15,444.

Can someone explain what I am doing wrong please?

Also, if you are interested in looking over the rest of the deal I would love your feedback!

Thank you!

View report

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

@Harvey Yergin IV,

Thank you for your prompt response to my post. I can't thank you enough. 

As I have not spoken with a lender yet (appointment later today) I am not sure exactly what type of finance package I will qualify for on this deal. I have 10% in cash and am able to come up with another 10% if need be. I am hoping to find a financing package like a 203k that may allow me to wrap the cost of the renovation into the mortgage payment but I am not sure if that is possible on an investment property that I will not be living in. If that is the case I may have to look into a hard money loan to support the cost of the renovation. What are your thoughts in this area?

2. I have gone ahead and adjusted the acquisition numbers in my estimate to what @Steve Wilson suggested. Below is a link to the updated estimate. Please let me know if this link does not work for you. 

https://www.biggerpockets.com/brrrr-calc/1246385.pdf?c=1568390347

3. How do I tell if there is going to be equity in there? That is what I am going for but I am not sure how to make the numbers work in my favor here...

Thank you both for your responses. Very helpful. 

Logan 

Thank you in advance for your help!

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.

That’s awesome! My girlfriend and I are so excited to spend time in Montana. We love being active outdoors so I think the community and area will be perfect for us. I am also a interested in buy and hold flips. I am looking to learn as much as I can before we get to MT in August. How long have you been involved in real estate up there?

Just want to start a dialogue with investors in Montana.  I am moving to Missoula in August and want to learn the market and meet some new people up in Big Sky country.  

Potential topics:

Best cities/towns to invest.

Best neighborhoods in Missoula. 

Missoula in general. Restaurants, night life, outdoor activity. 

What specifically do you do in real estate investing?

Looking forward to hearing from you!