Both my wife and I read (and podcast) a lot and are currently eating up everything we can get our hands on.

As a contractor I always prefer a full gut but it does eat away the rehab cost and takes longer but no stress about plumbing, leaks, electric, lead paint and etc in the future.The patch up would cost less, fast timing, but then you are gambling with what's behind the wall and hoping nothing happens in the future.I assume most house that are purchase for BRRRR purpose are in distress/bad condition and old on some occasion.What rehab number would you go for?

I have a hard time selling it , and it sits on the Market for months on end, and I end up eating the Bill.I understand that I can Rent it out , but I'm using Private $ , so the Backer will of course won't their$ back + the $ we agree upon once it sells.But if I can't sell it , then i'm stuckAny and all insight , tips and advice is much appreciated

Anyway, with a HML first and a 20% 2nd Gap funding the holding costs may eat up your profit if you don't turn that property fast.

If you are new to real estate, take the time to figure out exactly what you want and eat the elephant one bite at a time.Good luck.

This eats right in to your profit (not as much as not having the time to properly manage the place will though!).  

That can eat up way too much capital.Good luck.Brian

It normally works out to them eating 4 months worth of rent.

But what I thought they said is to figure out the cash flow and then divide it by two because history has tended to show that unexpected expenses (new water heater in yr 1, roof repair yr 2, etc) tend to eat up about half of your earned cash flow.  

@Kyle CarpenterYou would have to self manage this as a property mgr would eat all the profit.