The example focuses on debt service after refinancing. Recovering renovation money isn't enough if the rent can't support the new loan and the property's operating costs.
Market archive
Golden Age of BRRRR is over
I test a sample BRRRR deal to show how pulling cash out can leave a long-term rental with a much larger monthly shortfall.
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[00:00] the Golden Age of Burr has ended for long-term rentals in Tampa I'm going to show you what I'm seeing uh because I feel like there's a disconnect out there okay this is this is like a sample deal on a really kind kind of a unicorn deal that I just threw up here uh I kind of embellished a good deal that I found but
[00:19] 300K 90 90,000 into the rehab all of a sudden it's worth 600k um you're already negative cash flow at you know conservative 2700 a month in rent toll so and rins um the rins aren't really going to go up that much cuz I already predicted them at the arv value and let you pull out $90,000
[00:38] and then all of a sudden your monthly net cash flow is negative almost $1,700 a month so I'm not really sure how anybody's talking about doing burs successfully right now I don't know is there something that I'm missing here no seriously am I missing something
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