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How are you preparing yourself for the unknown future? and BRRRR
How are you preparing for the unknown future? if you do the BRRRR strategy, how are you analyzing your deal to make sure it makes sense no matter what can happen?
Hey Mishelle, I hope you are doing well!
What my team and I are doing is that we are running our numbers taking into account a downturn of the market of around 15% that way we know we are safe if we have to sell for some reason. I would recommend sticking with the 70% rule or less just to have a good amount of equity as soon as you buy and be safe from any downturn in the market.
Best of luck!
David
How are you preparing yourself for the unknown future? - Because the future is unknown, the best way to prepare is just to buy great deals. Pay under market value, pick strong sub markets, pursue good homes in desirable neighborhoods.
If you do BRRR how are you analyzing your deal to make sure it makes sense no matter what? - There is no way to make sure it makes sense no matter what. But if you follow the logic in my first response above, you will insulate yourself a bit from dramatic downturns. Also don't bite off more than you can chew. Keep a well funded reserve account to weather any storm.
Thanks for your help!