First time BRRRR method attempt needing help
Hi, I have found a property that has been damaged by fire. the structure is solid no issues. however it will be a full gut demo and rebuild other than framing. the property is listed for 20k and i estimate (waiting on meeting with contractor on monday) around 40-50k for repairs to get it to quality standards. ARV for the neighborhood that its in and its size should be between 78-86k. my plan would be to hold and rent the unit rental rate should be about 900/month. I have cash to cover purchase and closing costs of the property, however would have to borrow money for the repairs. Zillow shows rental estimate of 995/month. i may be wrong but when i try to calculate things to guesstimate expenses and such i try to lean on the higher side of percentages that i hear people talking about. so i caluted at 950 for rent. then for expenses im coming up with about 835 a month only leaving 115 for cash flow every month (after refinance) i have trouble with a couple of factors though, mainly repairs and capex obviously something needs to be held back here every month because it will happen, but everything will be brand new so risk of anything major such as roof, hvac, plumbing, electrical should be extremely low. with using Brandon Turners 4 square method it shows after refinace that i should be about to pull all my money out if im 60k in total after repairs and its worth 80k and would be at a 23% Cash on Cash ROI? maybe im confused and mixing strategies. please help!
the difficulty is this would be my very first deal ever so im more messed up than a football bat.