BRRRRing in 7% Interest

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Hey, so I have been wanting to start BRRRRing in the Los Angeles area. But when I run the numbers I just don't see how it's supposed to work with 7% mortgage rates. Even when I take a super optimistic situation such as:

Home price: $750,000

Rehab: $100,000

Post Rehab price: $1,050,000

Let's say I take back my $850,000K at a 7% 30 Year loan

I get super lucky and am able to rent the property for 7% a year $6,200. Which is very very high for a 1M home in Los Angeles.

Expenses:

1. Property Tax - $800

2. Insurance - $100

3. Mortgage - $5,650

Total expenses: $6,550

So I am actually bleeding $300 a month under the assumption that:

1. I raised the value all in by 25% doing a rehab. If I raise it by 20% Im $500 out of pocket a month..

2. I was able to rent it for 7% (which is very high for Los Angeles)

Can someone shed some light on this, am I missing something. Seems that the only way to make money today in BRRRR is finding areas that rent at 8%+.

Anyone BRRRing in LA during these times?

Thanks in advance