How It Works:

1. User Inputs:

   • Purchase Price: The price of the property you're buying.
   • Rehab Costs: The costs of renovations and repairs.
   • Monthly Rent Income: The amount of rent you expect to receive monthly from tenants.
   • Refinance Percentage: The percentage of the property's value you can refinance (typically 70-75%).
   • New Loan Interest Rate: The interest rate for your new loan after refinancing.
   • Loan Term (in years): The term of your loan in years.

2. Calculations:

   • Total Investment: The sum of the purchase price and rehab costs.
   • Refinance Loan Amount: The amount you can refinance based on the refinance percentage.
   • Monthly Mortgage Payment: The mortgage payment you will make on the refinanced loan.
   • Annual Cash Flow: The difference between your annual rent income and the annual mortgage payment.
   • Cash-on-Cash Return: The return on investment based on your total investment