What started as a promising BRRRR ended with us making the tough decision to sell at a loss after an unexpected disaster.The Numbers:Sold for: +$230KPurchase Price: $115KClosing Costs: $3KRehab Costs: $105K ($49K original rehab, $56K additional repairs due to the car crash)Holding Costs: $31K (12 months)Selling Costs: $16KInsurance Claim Recovery: +$25KNet Income: - $16KWhat Happened:This was supposed to be a BRRRR.

Always curious how others strategize around that.Great question, I make sure that I can hold on during those tough times and don't take on too much that I can't chew.I always try to have a longterm vision and think of the property in a 10-20+ year viewpoint.

I've seen many responses from contractors, saying they've got to buy materials, pay their workers, etc and if they don't know you, you should expect to pay a deposit.I can see both sides of the problem.Contractors, if I foot the bill for the materials, your risk is lessened.How can I propose a fair solution to my contractors?

My goal is to switch to these workers as they have a steady paycheck.

They make setting high rental prices very tough.

Just keep in mind, the guru will not bail you out in a tough situation, unless there is significant profit in it for them.

Paint and carpet are tough enough to organize remotely.

Class C transitioning to Class B: more renovated homes, higher income tenants and homeowners moving in, nice cafes, shops, restaurants, coffee shops opening up.An extreme example of Class C to B is in San Francisco - when I was a kid, what was not a safe neighborhood and had lower income people, is now in high demand and tech workers making $200,000+ are living there and people walking around at night going to restaurants and shop. 

But don't think it will take everyone 3 months though.If you do it right it could take you sooner:If you are in a super tough market, it could take you longer.Depends on many things

You’re absolutely right—LA is a tough but opportunity-rich market, and I’m putting in the groundwork to make the most of it.While I’m starting local in LA, my focus is expanding across California, Nevada, Arizona, Oregon, and Washington.