BRRRR bad house good neighborhood

[Blake Hrabal]

I understand the fix n flip strat is to find the worst house in the best neighborhood. And that's strict...that's how you get the biggest return and make it worth while.

Is this is the same strategy for BRRRR? Atleast, for the Rehab step. Are you still scouting for the worst house in the best neighborhood, or there's more wiggle room? I mean, obviously finding the best deal is important...but I feel like BRRRR's gold mine is in the long term investment n cashflow.

What if you bought a house for 200k and only put 20-30k into it fixing up a bathroom n some other things that add value - then rent it out and refinance after 6-12 months - does this mean i'll get a smaller % of proceeds, but  still be able to pay off the loan, get my original investment (DP, CC, SC, etc) have tenants, and maybe just not profit as much off the refinance?