BRRRR Strategy - Cashflow after pulling initial investment out

[Hari Narayanan]

Hello,

For BRRRR strategy, is there a good rule of thumb (either your own or a generally accepted rule such as the 1% rule) for what the cashflow should ideally look like after refinancing and pulling out your initial investment? I am talking about cashflow to you after PITI.

Is breaking even good enough?

The properties I am looking at are in Northern California.

Thanks!

[Jim Goebel]

@Hari Narayanan

Everyone is going to have different 'options' : opportunity costs (other investment opportunities), and what they consider 'good.'

I don't like banking on appreciation, but if there was a large enough prospect of that occurring, I'd trade some cash flow for that.  Not sure if that's your case.

We have seen $200 to $1000 cash flow per month, per property.  We do a lot of value add.