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Updated about 5 years ago, 10/22/2019

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3
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Zac Allen
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3
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Intentionally leaving some money in a deal

Zac Allen
Posted

I was wondering if leaving some money in a deal to ensure your rental property is cash flowing is a bad idea or what the drawbacks were. Here's an example thats similar to a situation I'm looking into. I found a house that I want to use the BRRRR strategy on and after refinancing it, the monthly expenses would be about $1800. The rent for a house like this can range from $1800 to $2100. I was thinking if I left some money in the deal that still yielded a healthy ROI and helped to keep the monthly expenses closer to $1500 to help ensure it was cash flowing, the only drawback would be that I don't have as much in the bank to BRRRR my next house. Are there other drawbacks to this adjustment to the strategy?

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