What do you categorize as BRRR potential?

[Martin Lindsay]

I know a lot of what most investors see as a potential BRRR is determined by ARV and how big the rehab will be, but what I'm wondering is where do you draw the line for what might be a BRRR vs. what could be just a buy and hold rental?

A typical example would be finding a property that isn’t exactly distressed enough to need a large rehab, but instead is outdated, in need of a good cleanup maybe simple landscaping, and just general TLC?

My question is what do you all identify as red flags and green lights to help point you in either direction? Thanks!

[Bradley LaBrie]

@Martin Lindsay I’m speaking to both. Generally I’m trying to either do a cash out refinance or I’m buying as an owner occupant with low down and then force appreciating it to the point where the 20-25% needed to refinance will be covered as well as the closing costs.

If that is not the case, in my opinion, it isn’t worth it to refinance and I will simply buy and hold.