After a bit of back-and-forth on the repair costs, I negotiated it down to $69,000, convincing them the extent of repairs was higher than they initially estimated.

After a bit of back-and-forth on the repair costs, I negotiated it down to $69,000, convincing them the extent of repairs was higher than they initially estimated.

If the roof itself is not covered, you can estimate your out of pocket if the whole roof has to be replaced. 

Ask them to do a cost estimate.

My take on this is to underwrite purchases based on expected LTR rents (I like rentometer and the BP's own rental estimator), but start charging 1.5x that rent for your MTR.

I’m talking about getting thorough with expense estimates, factoring in property taxes, insurance, and a cushion for maintenance.

The rental market has softened in SF and that’s why the NOI estimate is less if I were to just market it for annual leases.

You mention offering homeownership opportunities to people who have been rejected by traditional banks.Do you have an estimate, or a track record, regarding how many of these homes will not be purchased under the contract and the borrower defaults and the home will revert to you to resell? 

If your estimated rent from a property pays off the Mortgage + Maintenance + Property Tax + Insurance.

Clearly there's a lot more ROI and work for a BRRRR.After finishing David Greene's BRRRR book and combing the forums, my impression is it'll come down to building the right team and doing our due diligence on finding and analyzing deals, estimated ARV, rehab costs, and rent /demand for an area with the most conservative estimates.