Lastly, considering alternative materials that offer durability at a lower cost can also contribute to maintaining healthy profit margins.

When it comes to how much “profit” or buffer to leave in a deal, there’s no one-size-fits-all number, and it really depends on your market, the property, and your comfort with risk.Many investors aim to leave around ten to twenty thousand as a cushion, like your agent mentioned, but what matters more is that the deal still makes sense after all costs (purchase, rehab, holding, financing, and resale or refinance).

Today, I’m actively working on my first BRRRR deals in the Sacramento region, building strategic systems, and establishing the right professional team (contractors, property managers, lenders, and attorneys) to scale safely.My goals are to:•Build a portfolio of profitable, well-managed BRRRR properties•Develop long-term assets •Create a multigenerational legacy through smart financing, disciplined operations, and strong partnerships•Connect with investors, contractors, and professionals who value transparency, responsibility, and consistencyI’m here to learn, share my journey, and build relationships with people who take real estate investing seriously.

I'm looking at the market right now and just puzzling how people are making profits.

The reason it won’t work is that “low end” assisted living is not profitable.  

But CEO's of these companies like to over-hype the capabilities to raise money, even though so far billions have gone in and profits are elusive. 

If you intend on using the property then you can virtually forget about it turning any kind of profit, and you'll be lucky if it breaks even. 

And profitably too. 

However, it often results in lower profit margins and less control over product quality and delivery times.

This structure minimized risk and maximized the potential profit of the project.How did you add value to the deal?