BRRRR Strategy question

[Yosef Ajami]

New to the real estate market and looking to learn. I was reading a lot about the BRRRR strategy, and was really excited that I found such cool way of investing. But after watching many videos, I came across one specific video of someone playing the devil's advocate: he was saying how no one talks about the possibility of your property value dropping below the "after renovation Value" and having your lender ask you for the difference? Is that actually something that can happen? And how do you avoid this? Do you just try and choose the right market where prices won't drop, and hope for the best?

[Jesse Byrer]

@Kris Mann you are correct... the LLPA for 75% vs. 80% for an investment property is a significant adjustment.  If you have the money that would be the better way to go.  I would say look for better spreads, but it sounds like your market doesn't have that possibility :-) Best of luck!