Need your help to Analyze the BRRRR deal

[Krishna Surendra]

Hello,

I am looking to purchase the property in St Louis for 69k and the rehab is estimated to be between 10-15k.

The ARV is 110-120k.

Please let me know if you can tell me if this is a good BRRRR deal and I'd appreciate it if you can recommend a lender.

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*This link comes directly from our calculators, based on information input by the member who posted.

[Dan H.]

At that rent point, the property will be challenged to meet the 50% rule. Therefore, I expect less cash flow than depicted by the 50% rule.  So cash flow will not provide much return.

If ARV is $110k this property historically has appreciated less than inflation. So no return from appreciation.

The margins are not large enough to justify a flip. $84k for ARV of $110k. $10k selling costs bring to $94k. Add holding costs on a couple/few $k. If things go well, maybe $14k for the work and risk of a flip. Too thin margins.

Good luck