I’ve always done the math and in the denver market long term capital apprciation has been way more powerful than cash flow.  

Basically, the math tells you if flaws exist or not,One thing I would dois to find out the average rent, tenants are paying (use rentometer.com, Zillow rent estimate or ask around) for houses that are similar to the "post-rehab" house (same number of rooms, 1 or 2 miles distance, without crossing high-ways or main roads). 

When doing the math, i'd be purchasing a property in need of alot of work at $312 / sq ft. while comp properties sold within past 60 days (which are in better shape) at $266-$290 per sq ft. 

Generally, with appreciation and pay down over time on real estate investment your returns based on the invested equity position goes down (per the math) with significant appreciation which in my market we have seen.

l need CLARITY on the BRRRR.I think l need to step up in property calibre ....please advise.....TyroneSo if my math is right you're all in for $40,500.

I like to use Karl's Mortgage Calculator (on my Samsung Droid).If you want to simply calculate interest only, the math is $4,500,000 X 6.5% (.065) / 12 = $24,375 interest only payments.

@Charles Whitaker you are correct that there are products that will lend over the value of certian assets and your math is correct that it can sometimes be 5x's the asset value. 

Do the math and see if it makes sense to sell before time's up.

If you're anything like me, your math is sound.

But I can tell you your math is incorrect.