BRRRR doesn’t fit 70% ARV. Could it still be worth it?

[Aaron Hale]

I’m looking for our first rental property and have concluded utilizing the BRRRR strategy will be the quickest way to build a portfolio, but what if the property doesn’t fit in the pretty little box? Besides being the FNG to real estate investing, I’ve got a few other things making the search difficult. I’m a combat blinded and nearly deaf veteran. My wife and I run a chocolate company which takes up much of our time. We also live in a beach community where the prices are a barrier to entry. Not letting any of this deter us, I’ve enlisted the help of family and a trusted contractor to find an out-off-state investment. The location happens to be my hometown so I know the area. The prices are better and rents are good, but it is still competitive. We’ve located a pretty good prospect but, after running the numbers, the ARV at best will overall purchase and rehab costs will be 80% I’ve the ARV. What are the consequences of exceeding that 70% threshold when going for refinancing? Could it still be worth the purchase/work?