High end BRRRR investment

[Michelle Herschend]

Has anyone done a BRRRR on a higher end property? I know that is subjective. In my area, I'm typically working on 3/2 homes around 100-150k, renting for around 800-1000 and cash flowing a couple hundred dollars a month.

An opportunity has presented itself to buy a 6br home in one of the most desirable neighborhoods in town. It is cosmetically outdated but well cared for, so there is some room to improve. It is a historic home, however (1900s) so that could potentially present unique challenges. Currently listed for $460k, but been listed a while. If I have run my numbers correctly I think I could rent it for around $3000 and have a cash flow of about $1000 after mortgage, tax and insurance.

Big risk = big reward or is this a terrible idea?

Has anyone done “luxury” BRRRRs or executive rentals and had success?

I’m also considering that I may have more conscientious tenants at this price point which is a plus as well.