Bear in mind that the fiscal treatment of the two options in Mexico is different (withholding tax on the gross income with the fideicomiso vs cost deductions with the corporation).

Furnishings and outfitting run about $20/ft professional but if you DIY at $15 and its 1,500 sq ft $22,500.AirDNA has the property at $65,000 Annual Gross.

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.

When I list this asset on my PFS, I list the value of my ownership units, not the gross value of the real estate and my “share” of debt. 

Typically lenders can lend up to 50% of what your gross income is.

That can be anywhere from 6-13% of your gross, which is pretty significant.

they are kidding themselves one needs to punch in 50% to 55% of gross cash flow for expenses then deduct your mortgage payments.. anything less than that will not play out over the years.

If it's currently an STR they should be able to provide you with the p/l statement from prior years so you can see gross rents, operating expenses, average daily rates and occupancy levels.

However, it's a deal in a different state and during the Facetime showing, I could tell the tenants were gross and makes me think they don't care about taking care of the place or their living conditions.

It has surprised us delivering nearly $60k in gross revenue annually.