Cash on Cash versus Equity

[Eric C Gunderson]

I have a BRRRR property in escrow with opportunity to backout due to some inspection items the seller is not willing to fix. The deal will provide over 20% Cash on Cash but all in cash will be essentially at the expected appraisal value. Therefore, I'll leave in quite a bit when I refi after rehab but make virtually nothing when I sell it down the road. The area doesn't appreciate (depreciated over last ten years or so) at all so time will hurt me more than help me. My analysis/numbers are solid so my question is should I buy a property that will indeed provide a 20% plus return knowing I'll make nothing on the back end?