Let me ask you a question:
How would you like to spend tens of thousands of dollars fixing up a property, get it rented out, and then realize that it doesn’t actually make you any money?
Doesn’t sound too fun, does it?
My name is Brandon, author of The Book on Rental Property Investing, and today I’m excited to give you a tour of the brand-new BRRRR Calculator from BiggerPockets. This incredible tool will allow you to analyze a fixer-upper rental property — including cash flow, cash on cash return, total investment, and more — in under five minutes.
Sound too good to be true? Well, stay tuned, and I’ll show you how easy it can be.
(Watch the video below or read the transcript that follows. Or both. The choice is yours!)
What is BRRRR Investing, Anyway?
So before I show you the calculator, let’s all get on the same page on exactly what it means to “BRRRR” a property.
No, I’m not talking about buying a house in the middle of winter. I’m talking about:
- Buying a property (usually with short-term funds like cash, private money, hard money, or a partnership),
- Rehabbing that property,
- Renting that property out,
- Refinancing the property to pay off the original loan, and then
- Repeating the process over and over.
If you want to learn more about this fantastic BRRRR strategy, read our free eBook on the subject at www.BiggerPockets.com/BRRRR.
OK, so let’s get to the tour.
First, you need to access the calculator, which you can get to by going to www.BiggerPockets.com/analysis. Once you click on the “start an analysis” button, you’ll have the choice of several different calculators. Choose the BRRRR calculator.
Related: How to Calculate Cash-on-Cash Return
Page One of the BRRRR Calculator
The BRRRR calculator is similar to the BiggerPockets Rental Property Calculator, the Flipping Calculator, and the Wholesaling Calculator in that it contains three pages, followed by a final results page.
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