Money left in deal

[Elvin Santiago]

How successful have you deal BRRRRs been lately? Are you leaving money on the deal? How much are you tipically leaving. I want to start doing BRRRR and had an agent reach out to me and ask me how much I’d would like to leave on deals and suggested 10-20k was the norm.

[Jimmy Lieu]

Quote from @Elvin Santiago:

How successful have you deal BRRRRs been lately? Are you leaving money on the deal? How much are you tipically leaving. I want to start doing BRRRR and had an agent reach out to me and ask me how much I’d would like to leave on deals and suggested 10-20k was the norm.

Hi Alvin, BRRRRs are definitely tougher now than a few years ago, but they’re still doable if you buy right and stay conservative with your numbers. For me, most of my recent BRRRRs in Columbus Ohio still work but I usually expect to leave something in the deal, and honestly 10–20k is pretty normal in today’s market, especially if you want decent areas and solid tenants. I moved here from Portland in 2020 to invest and now own 10+ rentals, and what’s kept deals working here is the macro growth—tons of population growth, job growth, and huge companies coming in like Intel, Amazon, Google, Honda, Microsoft, and more. Even with the appreciation, you can still find properties in that 120–180k range that hit the 1% rule and cash flow while still having room to refi most of your cash back out. I wouldn’t get hung up on the old days of true zero-in BRRRRs; leaving some money in is pretty standard now, and it’s still worth it if the deal cash flows strong and appreciates in a market growing as fast as Columbus. Happy to connect and answer any questions you have!