Most first-time BRRRR deals don't die in the rehab. They die on paper, before the offer is ever written.

The killer I see most is buying at a price that only works if the appraisal saves you. My buy box in Memphis is single-family under $100K, and the house has to appraise at $180K to $265K ARV on sold comps after the rehab. If that ARV is not there on paper before I buy, there is no deal, because the DSCR refinance at 70 to 80 percent LTV is what hands my capital back. A soft appraisal doesn't just trim the profit. It traps your cash in the house and kills the repeat part of BRRRR.

Second killer: rent you invented. I underwrite to the 1% rule against real Section 8 rents, $1,395 to $1,950 for 3BR and up in the ZIP codes I buy: 38109, 38111, 38112, 38114, 38116, 38117, 38118, 38122, 38128.

Third killer: a rehab scope that grows teeth mid-project. Converting a 2/1 to a 3/1 or a 3/1 to a 4/2 is where the rent jumps, but only if the scope was fixed before demo day.

At 236 properties, my bottleneck is not money or contractors. It is deal flow, enough houses that pass all three checks.

What killed your first BRRRR deal: the purchase price, the appraisal, or the rehab?