To simplify the scenario I'm envisioning let me put it this way: what does a BRRRR look like when one of the parties contributing to the down payment and rehab costs ultimately ends up being the renter as well?

Cost approach A straightforward method that adds the cost of the land to the cost of building construction.

Additionally, working in a small-town market taught us how to effectively price properties for faster sales without compromising profit.

The type of the neighborhoods where his properties were located didn't fit in with my plan but he did well and the purchase costs were low.

While the borrowing costs are higher, I’m exploring strategies where the returns could offset this.

Borrowing $200K at 4-5% will cost you $8000 - $10,000 of interest each year. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Every project needs a quote and you should be able to estimate the material costs.

I've added a few things for very minimal cost that guests really love and increased revenue ~34% year over year.

Focus on areas with strong rental demand, like Broad Ripple, Fountain Square, or near universities like Butler and IUPUI.Maintenance Costs: Indiana weather can be tough on properties, so budget for seasonal maintenance like snow removal and HVAC servicing.Additional AdviceKeep an Emergency Fund: Unexpected repairs or vacancies can arise, so having 3-6 months of expenses saved will help you weather any surprises.Build a Reliable Team: I have lists of contractors, handymen, cleaners and property managers if you'd like me to send.Good luck with your property and future expansion!