Sometimes properties that exceed the 1% rule can come with risks, like higher tenant turnover or hidden repair costs.

To determine rehab costs, calculate the After Repair Value (ARV), total rehab costs, purchase price, and other expenses.

We don’t really need the $400/mo cash flow and so have been saving that just in case the house needs a major repair.

I’ll add some details to the mountain houses which will shed some light.The houses are aging and I’m doing a lot of wood, siding and deck component repairs plus they need staining quite often.

Hi Josh, here are some common mistakes investors make when doing a BRRRR:Overestimating the After-Repair Value (ARV):Investors sometimes overestimate the future value of a property after renovation.

What repairs/improvements do you NEED to do, versus THINK? 

And even then… i have seen home owners get less bc they lack stamina, negotiation skills, they lose money when negotiating for repairs… or they don’t know how to quantify a repair.

I am currently living in the property by myself and plan to rent the house after some essential repairs.

I would use cleaning services but it's my understanding I could use more than one company over the course of the year to limit how many hours one company spends on it.I'm looking into a utilitarian STR more for business travelers, so this won't be one where everything is perfect, it's bound to accumulate wear and tear I think.The STR would be out of state, but I plan to travel there for probably two weeks a year where I would perform many repairs myself.

Hi @Tyler TomasAn appraiser can do a Subject To appraisal where they give you the AIV (As Is Value) and the ARV (After Repair Value).