Evaluating a BRRRR deal vs a "conventional" deal

[Navid A.]

Hello BP,

I just finished reading Brandon's book on "Rental Property Investing" along with David Green's book on "BRRRR". Brandon emphasizes the need to analyze deals to ensure a property will cash flow AFTER accounting for maintenance, management, capex, vacancy, etc. David Green, when speaking about BRRRR, admits that the model inherently reduces cash flow due to the fact that you're refinancing a higher balance.

My question is, upon a successful BRRRR, how realistic is it to actually cash flow after accounting for aforementioned expenses? The strategy is wonderful in that minimum capital is left behind in the deal, but I'm skeptical whether the cash flow left behind is sufficient to account for such expenses AND still make a net profit. Are BRRRR investors just keeping a reserve fund to compensate for the expenses or are they using cash flow produced from other properties to cover the expenses of others as they arise?