Does BRRR only apply to distressed homes? What about outdated?

[Simon K.]

Does the BRRRR strategy mostly apply to distressed/gutted homes? What if a home is just outdated and needs modernizing? Will your ARV ever break even with the Buy + Rehab costs for an outdated home? For example, a lot of what is being touted by the BRRRR strategy is applied to distressed homes that are bought for, say, $50,000. You add in rehab costs of $30,000. The ARV becomes, say, $120,000 and so you recoup the 80,000 when you refi. Now what if you bought a home that was simply outdated and needed some work and a few repairs here and there. Let's say your purchase the property for $400,000, put in $50,000 of rehabbing. Is it realistic for the ARV to become $562,500 so you can recoupe your costs when you refi? Or is that simply not realistic and does not happen often? As someone who is looking to purchase their first investment property, I would feel more comfortable with an outdated home that simply needs some modernizing. A fully distressed/gutted home seems very daunting for a beginner. What are your thoughts?