(Note this simple calculation doesn’t include additional principal paydown at lower interest rates)

Many lenders, including my group, offer a DSCR product to refinance on the back end as well.Before taking out a loan for a BRRRR project be sure to calculate all carrying costs (taxes, insurance, utilities, HOA, loan interest, etc.) to ensure (i) you have sufficient cash to cover monthly payments for at least the duration of the project and (ii) your estimated rent after repairs is at least 1.10x PITI (monthly refinance loan payment principal and interest, taxes and insurance).We have a proprietary BRRRR cash flow calculator tool that we share with our clients to help reliably assess costs and returns for these types of projects.

So, if that business is showing a big loss after adding back deprecation, and other add backs for rental income, that loss (or gain) will still be  calculated  into your debt to income ratio. 

So I wonder if we're in for drastically increased insurance expenses ahead.i havent used the BP calculator but the Return on Total Equity will be north of 10% for the first 7 years. 

I'm using the BP wholesale calculator. the ARV is $ 45,500 when i put the numbers in its telling me the most i can offer on the house is $90,000 I wanna offer $22,500 

If you've owned the duplex for longer than a year and it's on taxes, there's no restriction to the income that is calculated (as in it doesn't have to zero out; it can give you income on paper). 

View report*This link comes directly from our calculators, based on information input by the member who posted.This is the first time I'm using the calculator. 

I also get baby bonding through CA, which is paid family leave, and I plan to use this strategically to spend more time at home.When I buy the starter home, based on my calculations, I'd be saving around $6-7k per month.

BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy.

Here's a bit more in detail about how rates are calculated for DSCR loans:1.