BRRRR Strategy Acquisition Question

[Joey Webb]

I am still a relatively new investor and I have been studying the BRRRR strategy and wanting to take action. The one question that keeps lingering in the back of my mind I have not been able to find anyone to discuss or explain this yet. My one question is, does the purchase price have an affect on how well this strategy works? The ability to pull your money back out after the refi is largely (or solely) dependent upon the forced equity you create. For example; If you need to force 20% equity on a 100k home VS forcing 20% on a 200k home that is a major difference. Now I know it all depends on the ARV. If you know you can get the ARV that you need and buy at the right price it theoretically shouldn't matter. My one major reason for asking is I have yet to see someone on BP (or elsewhere) use a BRRRR strategy on a property valued more than 150k? Typically I see it being used on properties from 10-80k in value (granted the ARV is 150k range). I hope this question makes sense and please feel free to share links if you have seen examples on BP or somewhere else of someone using the BRRRR strategy Thank you!