BRRR Question on investment property

[Kunal Sarin]

Hey guys - Looking to buy a property in the Chicagoland area. Nice 4 bedroom 2.5 bath with a full basement, attached 2 car garage. 

Looking to implement the BRRR strategy for this one. Based on my numbers (acquisition, rehab, holding costs, closing costs etc.), I am at $20K for out of pocket expense when everything is said and done. In turn that will give me a total equity of $55K in the property, based on the ARV (using a conservative number). So net equity gained will be $35K on a $20K investment. In addition, I expect to have a positive cash flow on this property for $350 per month, giving me a good cash-on-cash return as well on that $20K. With all this said, do you think this is a good investment from a BRRR standpoint? I know with BRRR, the goal is to use little to no cash from out of pocket, but even with $20K out of pocket, to me this seems like a good investment.

What do you think? Would appreciate your input. Thank you!