Is this a deal to BRRR or not?

[Cory Wells]

I have a lead on a house that I can get for 30K cash with an estimated rehab cost of 15K. The ARV is 70K and will rent for $750. My numbers look like:

Rent                            $750

Vacancy(8.3%)            $62

Property Taxes           $71

Insurance                    $58

Repairs/capex(18%)   $135

Management(10%)    $75

Cash Flow                    $349

Option 1: refinance at 6M-1Y with a  30 yr mortgage. Mortgage would be 283, which leaves cash flow at $71 and an infinite return

Option 2: When I refinance, I leave about 7-8K in the deal or whatever amount leaves me at $100 per door

Option 3: refinance immediately with a portfolio lender at 20 yr fixed. Mortgage would be 343, which leaves a measly cash flow of $11 and an infinite return.(not really an option at this point, but I don't see how anyone makes a portfolio loan work after their max amount of Fannie loans)

My question is should I shoot for $100 per door and pass on this deal if I can't get it for a lower price and all my money back, or go with it since my ROI is infinite? My goal is to get to 20 doors in the next 5 years or as quickly as possible with at least $100 per door and 12-15% ROI.

[Jorge Ruiz]

@Cory Wells

Option #1&3 isn’t enough cash flow-on least in my opinion and I'm sure a lot others would agree. 

Option #2 you need to know what value “whatever” is- not a good way to do business. 

Overall this is not a deal I would involve myself in. 

All the best to you...

Jorge