Im analyzing my first BRRRR property,figured out my ARV range and rehab estimate, and ive noticed that in order to pull ALL of our money out during the Refi stage, we have to make really, really low offers.
Im just wondering what percentage range some of you successful guys (and ladies) are comfortable leaving in a deal so that I can offer something more appealing to lock a property up.
Rental Property Investor · Philadelphia, PA · Member since 2021 · 774 posts · 500 votes
1y
@Jesse Hubble - I would say that if either pull all your money out of a deal (during refinance) or leave 10% or less of your money in the deal that is a "successful BRRRR" - assuming the deal hits your other criteria for cash flow, long term appreciation, etc... It's hard to pull all of your money out of a deal these days and still cash flow, so leaving some money in shouldn't be consider a "bad deal" in my book. Good Luck!
Im analyzing my first BRRRR property,figured out my ARV range and rehab estimate, and ive noticed that in order to pull ALL of our money out during the Refi stage, we have to make really, really low offers.
Im just wondering what percentage range some of you successful guys (and ladies) are comfortable leaving in a deal so that I can offer something more appealing to lock a property up.
Hey @Jesse Hubble, welcome to the BP Forum! Can you provide some specific numbers to help the forum provide some suggestions/answers?
Im analyzing my first BRRRR property,figured out my ARV range and rehab estimate, and ive noticed that in order to pull ALL of our money out during the Refi stage, we have to make really, really low offers.
Im just wondering what percentage range some of you successful guys (and ladies) are comfortable leaving in a deal so that I can offer something more appealing to lock a property up.
That’s an awesome step you’re taking—analyzing your first BRRRR property is a big deal! You’ve already done the hard work of estimating the ARV and rehab costs, which puts you ahead of many beginners. And you're absolutely right: in order to pull all of your money out during the refinance, your offers have to be pretty low—sometimes so low that they feel unrealistic or uncompetitive in today's market.
This is a challenge many experienced BRRRR investors run into, and the reality is that most are okay with leaving some money in the deal. While the dream scenario is pulling out 100% of your original capital, it's not always feasible, especially as the market gets more competitive. From what many successful investors report, the sweet spot tends to be leaving about 5%–10% of the ARV in the deal. Some are even comfortable with up to 15%, depending on the cash flow and long-term value of the property.
For example, if your ARV is $200,000, then leaving $10K–$20K in the deal might still yield strong returns—especially if the property cash flows $300–$400 a month. That’s a solid cash-on-cash return and still far better than most traditional investments. So instead of only making offers where you pull all your money out, it can be strategic to slightly adjust your numbers and accept a modest amount left in the deal if it helps you actually acquire the property.
The key is to work backward from the ARV, plug in your rehab and refi costs, and determine what amount left in the deal still makes sense based on your desired cash flow. That flexibility can make your offers more attractive to sellers and help you get deals under contract without compromising your long-term investing goals.
Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.
Rental Property Investor · Philadelphia, PA · Member since 2021 · 774 posts · 500 votes
1y
@Jesse Hubble - I would say that if either pull all your money out of a deal (during refinance) or leave 10% or less of your money in the deal that is a "successful BRRRR" - assuming the deal hits your other criteria for cash flow, long term appreciation, etc... It's hard to pull all of your money out of a deal these days and still cash flow, so leaving some money in shouldn't be consider a "bad deal" in my book. Good Luck!
When offering on a BRRRR property, it's common to have to make lower offers to pull all your money out during the refinance. Many experienced investors are okay with leaving about 5-10% of the ARV in the deal, especially if it still offers solid cash flow. For example, if the ARV is $200K, leaving $10K–$20K in the deal could still yield good returns, making it a strategic approach in today's competitive market.