BRRRR Full Rehab Cash Flow and 50% Rule?

[Eric S.]

So I've heard a few investors on the podcast spit their numbers after a BRRRR and all of them said they cashflow. But using the 50% rule of thumb as a conservative start to estimate capex/vacancy/repairs, they did not technicaly cash flow based on .5 x gross rent - PITI.

I assume this is because with a brand new product, maintenance and capex will be really low for a long time am I right? So with this said, anyone who has done a lot of BRRRS  before is there alnost an average BRRRR x% rule you have found to be true? More like 20-25% or lower?

Hoping to understand this more as I dive into deals of this kind. 50% rule is tough in my market given the forced equity would really push the LTV past the 50% making sense when you refi.

Appreciate the responses in advance.

[CJ M.]

@Eric S.

Also keep in mind the 50% rule is .5 x gross rents minus PI (taxes and insurance are already part of the .5 cost).