I think it can be profitable for seasoned real estate investors who have both the time and expertise to make sure their rehab project stays on budget, but I definitely wouldn’t recommend biting off more you can chew and doing BRRRR for your first deal.

We have a couple ground up projects in the early stages and will be taking that into account when planning.

Just ensure that the projected rental income comfortably covers the new payments, including the HELOC.

If that's the case and you aren't viewing more properties in person than you are making spreadsheets on, you are destined for analysis paralysis.Spreadsheets can only tell you estimations based on numbers given to you online or by a real estate agent whose job is to sell the property.

When you're first starting, I recommend running analysis on at least 100 deals.

Friends who are heading up this project got me interested.

We use Hospitable as our PMS for automated messages and calendar syncing, PriceLabs for dynamic pricing and market analysis, Minut for noise monitoring, Schlage Encode locks, Ring cameras, and the Google suite for shopping spreadsheets and owner monthly invoices.

Let’s project realistic expense estimates via the 50% rule:$12k rent / 2 (50% rule) - $19332 P&i = negative $13332/year or negative $1,111/month.  

I think that is a great strategy if you are using the money for short term projects like a flip or a BRRRR.

My team is currently completing about 15 millions on redevelopment projects this years.