BRRRR

What you will pay to buy the property.

Your estimate of what it will cost to repair or renovate the property. Get a contractor's quote if you can, since repairs often cost more than expected.

What you expect the property to sell for once the repairs are done, based on recent sales of similar nearby homes. It is an estimate, so also try a lower number to see how risky the deal is.

How many months pass between buying the property and refinancing it. Lenders often require you to own it for a minimum time first.

Fees you pay when you buy (lender, title company, recording), as a percentage of the purchase price. Often around 2% to 5%.

What it costs each month to own the property while you work on it: property tax, insurance and utilities. Loan interest is counted separately.

Initial funding

How you pay for the purchase before the refinance: with a short-term loan (hard money) or entirely with your own cash.

How much of the combined purchase price and repair budget the lender will loan you. You cover the rest in cash.

The yearly cost of a short-term loan where you pay only the interest each month and none of the balance. Short-term investor loans usually cost more than regular mortgages, so use your lender's quote.

A fee paid to the lender when the loan starts. One point is 1% of the loan, so 2 points on a $100,000 loan costs $2,000. Enter 0 if there is none.

What a tenant would pay each month. Check listings for similar rentals nearby.

The percentage of time the property sits empty between tenants, earning no rent. 5% to 8% is a common planning figure; 6% is about three weeks a year.

What you pay the county in property tax each year, in dollars. You can look up a property's tax bill on its county website.

What you pay each year to insure the property, in dollars. Get a quote from an insurance company.

Money set aside for routine repairs and upkeep, as a percentage of the rent. 5% to 10% is a common planning range.

Money set aside for big, expensive replacements like a roof, furnace or water heater, as a percentage of the rent, so those bills don't wipe out your cash flow. 5% to 10% is common.

What a property manager charges to find tenants, collect rent and handle problems, as a percentage of the rent. Often 8% to 10%. Enter 0 if you would manage it yourself, though your time has value too.

Utilities you pay as the owner each month, such as water, trash or shared electric. Enter 0 if tenants pay all of their own.

How much the new lender will loan, as a percentage of the property's after-repair value. Many investor loans stop around 75%. Confirm with a lender.

The yearly cost of the loan, as a percentage of what you owe. Use a current quote from a lender, because rates change often.

How many years you have to pay the loan back. A 30-year loan has smaller monthly payments; a 15-year loan has bigger payments but costs far less interest overall.

Fees for the new loan, as a percentage of the new loan amount. Often around 2% to 5%.