How much cash are you willing to leave in a BRRRR deal?

[Hans M.]

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hello B.P. community,

I'm trying to land my first property, and I'm curious about your thoughts on this potential deal. My questions are:

1. In order to make the property cash flow at $200 a month (my own criterion for a SFR), I'd be leaving 56% of equity in the deal, $18,000 of my own money. However, I'd be getting a 13% CoC return. Do you think this is reasonable, or with BRRRR should I be aiming at leaving 0$ of my own money in the deal?

2. The ARV will likely be around 105-100k. However, rent in this area will only be 900-950k. So, I'll all-in for over the 1% rule, but after rehab, I'm under the 1% rule. Is this an indicator that this is not a great deal?

Thanks, all!