Making Offers in Relation to BRRRR
I am trying to better understand making offers and its relation the BRRRR strategy.
For example, if a property is listed for $150,000 with an ARV of $180,000, and will require $20,000 in rehab, according to BRRRR I could pay no more $106,000. I know these figures are a simplified (e.g. don't account for closing costs, points, etc.).
Yet, when reading forum posts, many BP posters contend that you'd be out to lunch to make a $106,000 offer on a $150,000 list price with a $180,000 ARV. That while it make work on one of every 100 offers, it will earn you a bad reputation.
Sooo... is it good business or bad business? And if bad business, how do you get those BRRRR deals?
Thanks in advance!