I still need to go through this whole thread but thought I could provide some info:
The BRRR's I see where the investor gets 100% of their cash back and still cash flows are not great areas.
You can still do BRRR's in desirable suburbs where there's more appreciation, but won't get 100% of your cash back.
I'm doing a slow BRRR
1. Buy in desirable suburb with good appreciation with higher rents (25% down)
2. Under market value (wasn't a steep amount but roughly $10-$15k) on a $125-$130k home
3. Light rehab. No major repairs but cosmetic stuff. ($10k)
4. Rent
5. Wait 3 years for appreciation to do it's work (est. value is $145-$155k)
6. Cash out refi to receive half or more back
7. Refi so that there's $150/m cash flow still
Slow BRRR = Modest appreciation + light rehab + time = 1/2 of the investment back.
My plan is to take the cash that I pulled out to cover the next down payment with some savings for the rehab. So it cuts down the growth time in half and isn't as risky. There's no all cash purchase + rehab upfront, rehab isn't crazy, and the area isn't rough.
