Having a BRRRR problem hoping someone can help!

[Stefan Demopoulos]

Looking to do my first BRRRR in Greater Phoenix, I have a real estate agent, hard money lender, and contractor in place. I have plenty of deals that I have been analyizing and keep running into the same issue.

I'm finding houses that need work and are currently being price cut. Even with lower prices and the rehab, the ARV and loan to value end up being too high of a monthly payment to support the average rent in the area. I don't care if my property cash flows a lot but I just don't want to be in the negative each month.

In most cases Im getting through the deal and everything looks good - purchase price, holding costs, rehab, ARV, refinancing, etc until I get to the rent and it cant support the monthly payment. I keep trying other areas in Phoenix, Glendale, Mesa, Scottsdale, Chanlder, Etc and it seems to be the same.

Is Phoenix not a good area for cashflow? Are rents too low? Maybe I'm doing something incorrectly on my deal analysis. 

Any suggestions would be greatly appreciated.

Thanks!

[Anthony Napier]

Congratulations, nice job in building your team, and moving forward to achieve your future successes. You have run the numbers; they tell the truth that this isn't your deal. Save yourself and family severe pain and sorrow. Listen to the cash flow evaluation as fact. Don't try to give CPR to a dead horse, that's futile and will lead to regret. Unfortunately, your first deal is where you stand to lose the most money and gain the most experience. Your first deal will make you or break you. Stay enthusiastic and drive forward with patience until the numbers make financial sense. My motto is, "Have patience...or become one!"