BRRRR, Hold, Sell: Anyone doing this?
After the refinance on potential BRRRR properties they tend to leave $0-$25/m of cash flow for a couple of reasons.
1. Higher mortgage payment
2. Long term CapEx: I calculate $180-$200/m per unit and that's if everything got replaced during the rehab. This was calculated over a 30 year period (life of loan).
3. Property Management
To realize more cash flow, it seems it'd be best to sell in 5-15 years before CapEx becomes an issue. Is anyone practicing this strategy?
It seems you could acquire several rentals, hold for 5-10 years, sell some, and use the gain to payoff the mortgages on a few.