Need a fact check BRRRR

[Jason Henry]

Can someone run the numbers to ensure I am correct. This is my first BRRRR and I do not want to miss anything.

Purchase price $25K  Cash

Rehab   $80k

ARV $130K

80% refi $104K which leave $1k in the deal (I am ok with that)

Rent $1200

Taxes and Insurance $150

Repairs/maintenance $36

Vacancy $36

Capex $60

Property Management $120

Cash Flow $70

Please advise if you would do this or not and if you would change anything.

Thanks in advance!

[Nathan Harden]

Why would you want to deal with the headache for only $70 on such a cheap property? Properties this cheap are traditionally geared more towards cash flow and $70 is not great cash flow. At all. You need to factor in closing costs for the Refi as well. I don't see any calculations for points and fees. Also, if you're expected rehab is triple the price of the initial purchase price, I can only imagine how bad it is. Rehab will probably be more than $80k. Something always comes up.