The problem with most people doing BRRRR is the level of debt and LTV they are at when the refinance is complete. 

@Charlene CaceresI would talk to them to see what their motivation level is, and that will help you to tailor the offer to meet their needs.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $75,000

Cash invested: $10,000

Purchased this house from a lady that couldn’t take care of the house anymore. Tried...

Not many here on BP have reached your level of success so be careful to who you listen to.

Here is what we do for our BRRRR projects:Buy distressed properties (cash with private lender)Rehab is 20-30K on average Rent it out at the top of the market Refinance (we created forced equity)Repeat the process Rehabbing at a better level provides higher quality tenants and higher rents.

Purchase price: $185,000 Cash invested: $106,000 Sale price: $394,100 complete interior renovation, merged two bedrooms to create master suite and vaulted ceiling, opened main floor so living, dining, kitchen and foyer all connect, in floor radiant heat (important on lower levels in Wisconsin) and custom vanities and tile in baths.

I am looking to add some square footage (add second level or add on to first floor).

I feel like you have more room to hold them accountable to a certain level of work and have clearer boundaries. 

You're analysis is right from a very high level, but there are many lower level costs that you're not considering, that Bart illustrated.

We were discussing rehabbing our first level and decided to get a line of credit in order to pay for the rehab.