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.

Just make sure to research your local rental market and get comfortable estimating rehab costs.It’s a smart plan, and you’re off to a great start.

you just have to estimate them based on what the property needs.so if it needs a new furnace + a bathroom gut and remodel + new windows, you estimate that.  

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.

If I don't feel comfortable I also give folks a chance to get a cosigners.

My partner called the owner who had give the original estimate, said no way are we paying until the job is done. 

Ask them to do a cost estimate.

Although the property is worth way more than the loan we are needing and the secured collateral lien is really a sure safe bet and some easy money for someone willing to take the chance that isn't in it for anything other than to flip their money for profit/wanting to add to their portfolio, this would be an good opportunity for someone just starting out in real estate investment even.

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.