With this strategy it's important to have cash budgeted in order to ride out a year or two of low returns/even negative returns as I rehab, but if done right leads to big profits in years 3-5 with appreciation easily in the 6 figure range and great eventual cash flow thanks to rent increases.

That's because they have less budget to work with.The goal of an IUL is simple: have the cash value earn a premium over the debt market rate of return.

In addition to the PMI which I see you've budgeted for, there may well be loan points and fees for a loan of this type. 

@Gerardo Gutierrez the key to getting the most advantage out of the BRRRR strategy is to budget your remodel.

As a recent college engineering grad who formerly had only been exposed to the typical American life (piling on as much debt as possible in hopes of keeping up with the Joneses), you guys have really got the gears turning in my head and have opened a new way of thinking for me.After recently obtaining a good paying job, I almost made the mistake of buying a new truck and taking on some of the other bad debt that comes with most college grads; instead, I have chosen to put my eggs in the real estate basket.

Your rehab is likely to go over budget.

I too have thought about trucking used homes from out of state as a stopgap.  

I budgeted 4K for labor and the remaining 7k for material which I knew was an extremely tight budget (even impossible) in order to get the property to the condition it needed to be in to fetch that 50k ARV.

That's $200 AFTER capex budget, insurance, taxes, whatever utilities the landlord is responsible for.

Do you price yourself out of most people budget because you need to charge more for the expenses of a pool?