Would you do a BRRR that wouldn't recoup all your cash?

[Nicole A.]

The market I buy in is increasing. I can't seem to find any BRRR deals that would allow for me to recoup all my cash in the end. Nevermind making any profit cash.

There is a property with a conservative ARV of $148,000. It is a HUD home and they're asking $80K.

The property needs about $40K in renovation (that includes unexpected items).

Closing with HUD and then closing again for the cash-out refi will total around $10K

I can get a cash-out of 80% of the appraised value, but assuming the numbers above, that means, I could only put in an offer of about $70K. And yeah, that's not factoring in holding costs for the 3-5 months it will take to renovate before I can refi (yes I do not have a 6 or 12 month requirement before refi).

How are people doing BRRR or flipping making money in a market like described?

Would you do a BRRR where you're $5K - $10K in after all is said and done?

Part of me says what's the point if I'm not at least recouping *all* my cash. The other part of me says that getting a renovated rental for $5K-$10K is great.