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Updated about 8 years ago,

User Stats

131
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138
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Gareth Fisher
  • Manheim, PA
138
Votes |
131
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BRRR Strategy minimal cash flows

Gareth Fisher
  • Manheim, PA
Posted

Long time lurker, first time poster.

I have noticed with this BRRR model. That with many properties if I leave 10kish into a property. Many of the properties I have been analyzing will meet cash flow standards. However if I take all my invested capital out, they will most likely cash flow since I'm self managing but only marginally. 50 to 100 a month.

However If I'm leaving money in the property doesn't this defeat the overall purpose of the model?  I expect to continue to see lots or appreciation in the next 5 years in many of the markets in my area, so I feel that my opportunity costs should be factored, so the idea of leaving capital behind when the bank is willing to lend me money.  Is something I should be considering, but lack the experience and the knowledge to make such advanced calculations.

On the other hand I obv don't want a portfolio of lousy performing sfrs.   

To me it boils down to this,  I can leave no money in which is still a good roi and make a little, or leave some money in and have a stronger performing rental property.    There seems to be strong arguments for both sides.  

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