BRRRR strategy issues

[Kerwin Montilla]

Good evening, I'm running into some issues with the brrrr strategy.  I baught a college rental for $82k rehab cost $15k which bring me at $97k property is worth $150k. Rented it out brings in $4,200 a month.  Went to a bank to get a cash out loan and these are the exact words I looked at your 2017 tax return. The cash flow for those two properties would only support a very small mortgage (less than $50,000). I know that sometimes what is on paper may not reflect reality, but the tax return is all I can go by. Any suggestion ? 

[Brent Coombs]

@Kerwin Montilla, while I'm a strong believer in borrowing to the max, that only applies if I'm wisely investing those borrowed dollars for a greater return than it's costing me.

ie. You don't have to borrow $112k, if borrowing just $97k gets you back your outlay!

Especially if you don't know where to get a lot better than 7.125% return yourself! My 2c...