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BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated 9 months ago on . Most recent reply

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12
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Craig Hansen
  • Investor
  • Northern Michigan
5
Votes |
12
Posts

1st BRRRR - a good deal?

Craig Hansen
  • Investor
  • Northern Michigan
Posted

I am looking at investing in my first BRRRR. My question is on monthly cash flow. Here are the numbers:

Purchase - $70K

Rehab  - $50K

ARV - $180K

Cash out refinance - will get 100% of my investment back or pocket up to $15K

Problem - I am estimating that my monthly cash flow will be about $100 a month. My other properties cash flow +$500 a month. I am worried about the low monthly cash flow, but understand this will grow over the years. 

Is this a good deal? What are others doing about cash flow on BRRRRs

Most Popular Reply

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954
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441
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Ko Kashiwagi
  • Lender
  • Los Angeles, CA
441
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954
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Ko Kashiwagi
  • Lender
  • Los Angeles, CA
Replied

With the current interest rate, getting 100% of your cash out is definitely a win in my opinion. Especially for a first BRRRR too. If you are really unhappy about the cash out, you can take less cash out, but I don't think it's a big issue if you are cash flowing $100 - you essentially get a free rental when you get 100% of your cash back (with equity built in)

  • Ko Kashiwagi
  • 310-848-9776
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