Infinite returns when they are low returns

[Chris Penny]

Hi, All. Been crunching numbers on various possible properties for a BRRR approach. I have found some that can give me infinite returns, but a very low dollar amount. In the end I might get a few thousand dollars per year. Hardly seems worth the effort. I assume that the plan would be to refinance again in 3-5 years. But I suspect I am missing something. Or does a low $$ infinite return mean it isn't that great a deal?

Thanks.

[William Hochstedler]

Have you heard the quote, "How do you become a millionaire?"

"Borrow a million dollars and have someone else pay it off"

Remember you're averaging $50K/year in principal reduction and you just created $400K in equity.  Why wouldn't you do this over and over and over again?  This is before cash flow, appreciation, and depreciation.

Make sure your numbers are honest.  Have reserves.  Remember capex.  And make sure you are buying in a market you want to be in 20-30 years from now.