I'm new here, currently reading the managing rental properties book and the investing in rental properties book simultaneously. I read a lot about the BRRRR method and it seems great but I'm a little confused on the specifics.
How much cash flow should I be looking for? I see a few people post about $100 or $200 cash flow per door and they have like 10 properties. That's all the work of managing 10 doors for only $2000 per month total. What if you get unexpected expenses or more vacancies than you anticipated and can't make all those loan payments? Is this the best method?
@Mirzet Mehovic Everyone has their own opinions on what makes a deal a good deal, and I'm with you... $100 or $200 per door isn't much if you're talking about single family homes or small MF. One turn over could wipe out an entire years worth of cash flow (or more)
However, the BRRR strategy does focus on a high ROI play where there is little to no money left in the deal. So for some, owning an asset that produces $100 - $200 per month in cash flow with no initial investment is fantastic.
I personally want more cash flow in my deals, and the trade off is less units with a higher cash flow per unit. Those are harder to find these days.
@Mirzet Mehovic when you see $100-200 per door this is after expenses , vacancy , maintenance, property management
Truly it’s more like $400-600 per door