This will usually lead you directly to low barrier stagnant markets where the cash flow represented in your spreadsheet does not transfer to reality and the most of the equity is "paper equity" because you will never see it materialize yet many look at completing the BRRRR as the ultimate success.I recognize I am using some assumptions but let's assume you have $100k to invest and purchase and renovate a home in MARKET A for $400K but once renovated the home is worth $500K.

I think flipping is the way to go on this project since it’s my first deal which has always been the plan but very grateful for some guidance. 5 weeks of tear out, wall paper removal 🙃, new electrical, deck supports, HVAC install…we start putting it back together!

You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases.

For the last 3 cities, I talked to turnkey companies whose numbers on paper looked good but decided not to go with those cities since I knew nothing about them. 

IE the buyer themselves buys low end tough to manage assets because they look great on paper.

We see this with MF investors as well, chasing the highest IRR%, which looks good on paper, but can end very differently on execution. 

If you've lived in your town or city for 5 or 10 or 20 years, you will know things about it I can never know and thus you have a distinct advantage over me when it comes to investing - you know what a good price is, what a bad neighborhood is, what house looks good on paper but is underneath the airport flight path, and so on. 

Those properties won't look as good on paper, but they'll perform MUCH better in real life. 

No broad cities cashflow great right now with managers, some look good on paper but they just have more costly hidden issues then the lower cap rate cities.

Here’s the deal (pun intended):Run the Numbers: If the deal makes sense on paper—cash flow, ROI, and all—trust the math, not just your gut.