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Updated almost 7 years ago on . Most recent reply

User Stats

38
Posts
13
Votes
Felicia Elliott
  • Rental Property Investor
  • Portsmouth, VA
13
Votes |
38
Posts

Need help understanding Profit Margin

Felicia Elliott
  • Rental Property Investor
  • Portsmouth, VA
Posted

Greetings,

I'm new to real estate investment and I was reading one of the BRRRR blogs and it stated that one of financial goals regarding Margin should be at least 20% of the value after remodel.

So here is my question, Does it mean the amount you invest in the property after you rehab should be at least 20%.  I’m not sure if I’m understanding this and would really appreciate clarification so that I can effectively apply it.  A scenario would be great also...Thanks

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