Originally posted by @CJ M.:
@Yuji Miyamoto
As you mentioned, all of the numbers you read about, 1% rule, 50% rule, minimum cash flow dollars, etc., etc. are more so guidlines. You need to look at the deal holistically. Just because rent is 1% doesn't mean it's a good deal and will cash flow. With the BRRRR's I've done, I looked at Cash on Cash return and trying to get as much of my investment back through the refi. So for example, after running the numbers, if the property cash flowed $200+ and I had most, if not all of my money back, I didn't even pay attention to the 1% rule. As Grant Cardone says, "if it doesn't cash flow say no."
Everyone's strategy is different, I'm just sharing mine.
Thank you CJ for sharing your insight!
Yeah the whole idea of BRRRR is to get your capital back after the refi! Since I can't allow myself to have a monthly negative cash flow after the refi, I seeked some insight from you guys! And also it will help me narrow down my search if you have your criteria in place. I can avoid those areas where median rent barely makes 1% of your purchase price which will not likely to cash flow after the refi for me so.
Again, thanks for sharing!!
