I have a duplex under contract right now. Purchase price $70,000 and could use around $2,000-$3,000 in work (possibly less). Each unit should rent for about $625-$650 each. I am a brand new REI and this will be my first deal if it goes through and the inspection checks out. I guess what I am looking for on this post is any advice on this deal and also advice on what additional steps to take during or after your first deal. Also if the BRRRR strategy will work on this property to pull my down payment out and move on the the next property (I believe this property appraised for around $80,000).

Depends a bit on whether its NEXT appraisal improves by significantly more than you put into it, after a required seasoning period. By itself, the $10k improved equity (on top of your own deposit) is NOT enough for you to be able to get your deposit back from your Lender by refinancing it later.

Meantime, it looks like it should cash flow nicely, even though it's not getting you rich QUICKLY.

All the best. Cheers...

Would it be recommended to pull out as much as I can after the seasoning period? I have a few other deals I am looking to jump on and am worried I won't have the funds ready.

The problem as I see it is that you likely won't have enough equity to pull ANY funds out. The only benefit for a refi would be if you were currently paying too high an interest rate.

How much deposit did you start with? Remember, 75% of $80k is just $60k (re-borrowability).

And that's if your Lender will even go as high as 75%...

It will be a 15% down payment.

Your transaction costs will eat up the additional equity you want to try to pull from this property. $73k invested for $80k appraised value isn't a good candidate for the BRRRR strategy - especially knowing that you only have 15% into it. It doesn't mean it's a bad deal, only that I wouldn't plan on pulling any equity out of this property any time soon.

Okay that makes sense. Thank you guys for the input!

@Luke Diem I concur with everything Brent and Rob said. You can't do a BRRRR with this deal. Reanalyze the deal and make sure you are good leaving your money it. If so congrats on your first deal! Usually... to get a good BRRR deal you need to find a property that needs a lot more work done to it. That's where you are adding the new value, which will get you the higher appraisal. To get all of your money out you need to be all in on the deal for around 70% of the new appraisal value.

Okay so it seems that you need to apply the same or similar rules that you would apply to a fix and flip. Offer 70% of ARV minus repair cost and then I would be in a good position for the BRRRR strategy? And I think this deal is still something I would like to follow through with because I believe I was able to get it at a price that will allow it to cash flow fairly well. Now is there any other options then aside from BRRRR that I could use this property to advance to the next?

Nope; other than setting aside any extra cash flow that you don't need for its reserves, to add to your savings from your own income, to quicker get another deposit together - for a better bargain.