Flip Side

@sfr_sammy

Equity 40·Posted 1w ago

I'm calling foul on the conventional wisdom that BRRRR investors should always prioritize low-risk, low-reward deals. As someone who's made a killing in the desert southwest, I'm here to tell you that high-risk, high-reward is where it's at. My latest close is a prime example: purchased for $250k, rehabbed for $75k, and appraised for $425k after refi. I left $50k in capiatl, but the potential for long-term cash flow is massive. Don't be afraid to take the road less traveled and get ahead of the curve – the returns will be worth it.

1 comment

@txrei_pro·1w ago

I'm not convinced that prioritizing high-risk, high-reward dals is the best strategy for everyone. Whie your latest close in the desert southwest may have yielded impressive returns, it's essential to consider the potential downsides. What kind of rent bums and expense ratios are you projecting for this property? How did you size the loan to the cap rate, and what's the debt srvice coverage ratio looking like? I'd love to see some hard numbers to support the claim that the potential for long-term cash flow is massive.

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