That pragmatism will help you mitigate risks as you understand the different components of managing rentals   

This is a fundamental component of the BRRRR strategy that I have yet to understand.Or, does it not make sense for the friend to invest in this deal if they're primarily looking to flip? 

If you’re strategic about locations, management, and financing, STRs can still offer decent returns in the right market.I totally agree that it’s not all sunshine and rainbows in real estate right now, but if you’re strategic—especially with tax savings and a long-term focus—real estate can still be a viable option alongside other investments.I agree with everything you said but it’s also important to consider the Time component.

Quick overview of our firm is three components.

Big lenders like Flagstar that have a servicing component are currently using their servicing business insight to go after refinance business internally.

That's a necessary component. 

.- Experience: You’ve successfully navigated a purchase, rehab, and refinance, which are the core components of BRRRR.Considerations: - Budget Overrun: Being $27K over budget highlights the importance of tighter cost estimates and contingencies.

And there is also a hope component involved.

First of all, I love the morality component of it.

There's nothing wrong with your strategy other than the partnership component, but don't twist the numbers in your hypotheticals in order to gain traction.