What is your rental equity expectation?

[Fang Underhill]

Hi, folks, 

When you buy rentals, how much equity do you desire to have when you buy it? This equity means the margin between market value and all in price after repairs. 

Thank you for your input. Let's build some passive income. 

Fang

[Kenneth Garrett]

@Fang Underhill

If your taking about the BRRRR strategy then you should shoot for 75%-80% LTV after rehab. Run your numbers so the rehab forces the equity. Although, the concept of the BRRRR strategy is to get all your money out, that is not very realistic many times. I generally end up with $5000 stuck in. This allows me to have all my money out in 12 months via the cash flow.