Am I mis-understanding BRRR?

[Susan Tan]

Please help me understand how BRRR works in real life: I have a paid off property that was appraised & I'm getting a loan on $48k on a 10-year fixed rate mortgage. The monthly projected bills are $492/month excluding the escrow bills. The net monthly rent after I pay off property management & HOA is $495/month. The rent does not cover the new mortgage. Are these really bad numbers that I should cancel this cash finance process?

If the same paid off property appreciates over time in future as I make more value-add repairs & I do a cash refinance on this same property, then that mortgage bill will be much more than $492/month. Is this supposed to be how BRRR works in real life?