The downside would come if you are not getting good enough deals to justify the BRRR method and you would then grow much more slowly than starting off with a portfolio rehab loan from the beginning.  

Due diligence:  I would find out what the lender's underwriting parameters and due diligence procedures are and if you agree with them make sure you have a method in place to insure they comply with those methods. 

@David Rom  The BRRR method in Ft.

I have been doing "what I believe" is finding out the comps in the neighborhood using an avg. sq ft method.

Also research fraudulent renters and the methods that they use. 

the unit is 1000 square feet.costs:Flooring $1.50' (LVP)Trim Molding $.68Cabinets $2,200 assembledCountertops $150Tile $1.30 footHVAC $3,900Paint about $500Appliances $900Vanities $200/eathat's a basic list plus all the other expenses!!

The method of investing that I believe currently suits me best is the buy and hold strategy.

“Siding and trim is damaged / deteriorated throughout.

@Chyniece CoxBRRRR is the method I use.  

Townhouses and Condos rent for 1%, yet how much cash flow can realistically be expected with an HOA, loan payments, etc.I was reading about the BRRR method as well, specifically buying a house here for around 225k and renovating to a predicted value of 285-295k and refinancing also seems like a smart move.I was hoping to get some advice from some more experienced investors than myself in order to quickly get in the real estate market here and start my portfolio.Thank you in advance!