For those navigating this evolving market, here are some critical takeaways:Price CompetitivelyCorrectly and competitively pricing your property is no longer optional—it’s essential.

While I would have built $150,000 in equity, the cash flow simply doesn’t work.Now, let’s compare this to the market conditions when BRRRR was highly promoted (pre-2020).Interest Rate: 4.75%Monthly Payment: $3,057/monthRent: $3,600/monthIn this scenario, I’d be making over $500/month with $23,000 left in the deal, resulting in a gross 26% cash-on-cash return—an excellent deal.As you can see, rates and prices play a critical role in the viability of the BRRRR strategy.

That said, Detroit is very much a block-by-block city, so local knowledge is critical to avoid issues.If you’re serious about learning more, feel free to send me a DM.

Any constructive criticism is appreciated.

Friendship and business don’t always mix well, so it’s critical to use a solid lease and treat this as a business arrangement.

My best understanding from talking to reps is they have one local employee (in addition to vendors like cleaners, landscapers...) per 10 listings/properties. 

Most lenders who order appraisals are required to order them through a 3rd party AMC, which can add additional costs to the appraisal but ensures that there is no lender (Or borrower) bias in regards to the values.

Timing is critical.

By having additional parcels, investors can generate more equity and value compared to simply adding an ADU.

Send me a message if you would like a copy of our7 CRITICAL STEPS TO PREVENT A TENANT NIGHTMARE BEFORE HANDING OVER THE KEYS