Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 7 years ago,
BRRRR after refinance leave minimal to no cash flow
I have been running numbers on potential SFH BRRRR properties. It seems best case scenarios have been that your total out of pocket cost in the end is little to no money for the exchange of time. However, after the refinance your cash flow is near $0. Basically in the end you spent no money, and after the refinance you cash flow nothing, but end up with a house without paying anything. I have been calculating my cash flow over the long term (30 years/length of mortgage), which means a higher CapEx budget due to the length of the hold. Does BRRRR only make sense if you hold short term (5-10 years) then sell and repeat the process? I am seeking long term cash flow/holds so I am not sure if it makes sense. Am I missing something?