BRRRR Strategy Cash Flow and Appreciation?

[Jenny Gremillion]

Hi,  

I'm looking at a single family rental potential...This will be a BRRR investment as we will pay cash for the property. We'll then do a cash out re-fi based on higher appraisal rate and then pay back our cash....We plan to keep this property long term. The cash flow doesnt look great (only around $100), but the appreciation long term will be good we believe in this area. I'm wondering if you use a different formula for BRRR vs. the traditional Cash Flow and Cash on cash return formulas?? Thanks!