Does BRRRR work in low-appreciation markets?

[Pete Abilla]

I'm looking at cash flow markets (ex: Cleveland) & have a few BRRRR opportunities in Class C neighborhoods. In low appreciation markets, how effective is BRRRR? I'm particularly curious (concerned) about the refinance step.

For example, suppose a house in a class C neighborhood sells for $50,000. Then Rehab of $10,000 with an avr of $60,000. 

In class C and a low appreciating (but high cash flow market), will that property appraise for a meaningful amount above ARV? Enough to get my initial capital of $50K out? Or even all of it?