Hi @Diana VillalonI’m a property manager and RE broker here in Indy and I’ve helped several investors find properties where the BRRRR method would work.The answer to your question definitely depends on the area.

@Diana Muresan thank you very much.

Hello all,My name is Diana .I am a new wholesaler in CA area.

Hello All,My name is Diana .I am a new wholesaler in Southern California area.

Investment Info:

buy & hold investment.

Purchase price: $30,000

Cash invested: $40,000

Bought this cond cash, rehab and hold.

It's the old story of having to kiss a lot of toads before you find a prince. 

@Diana Villalon On the surface, the numbers look awful.

@Bryan BealAs with all ratios they are just tools as @John Warren and @Diana Dorantes have mentioned.  

She just bought me the following books *Not that I was peeking*How to Invest in Real Estate - Joshua Dorkin & Brandon Turner (The King & Prince of BP)Retire Early with Real Estate - Chad Carson (amazing podcast ep 293)Raising Private Capital - Matt Faircloth (Fantastic podcast on ep 289)Long-Distance Real Estate Investing - David Greene (Recommended by my hero, Andrew Cushman ep 279)Finding and Funding Great Deals - Anson YoungThe Book on Tax strategies for the Savvy Real Estate Investor - Amanda Han & Matthew MacFarland (both very smart people who talk in-depth and the new tax codes in ep 269)Super excited to dive into these books! 

@Diana Muresan the mortgage is 295k on house that was appraised last sept for 420k.