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Hello Investors,
This week, we’re breaking down real deals that pull all your capital back and keep the cash flowing:
Kansas City BRRRRs – Infinite Return Examples
Brooklyn 3BR ($65K @ $51/SF) – $58K rehab, refi at 75% LTV on $185K ARV → $13.6K cash-out, $1.9K net profit, $86/mo cash flow, $0 left in.
Benton Blvd 5BR/3BA Victorian ($77K @ $27.50/SF) – $81K rehab, tight budget, refi at 75% LTV on $250K ARV → $25K cash-out, $11K profit, $300/mo cash flow, infinite return.
Supporting Analysis
Vallejo 6-Unit ($895K) – 11.7% CoC, one vacant unit = +$13.2K NOI upside once filled.
Las Vegas AVA 16-Unit – $1.09M down, 4.1% CoC, showing how Class A stability trades off yield.
From 75% LTV refinance mechanics to forced equity through smart underbuying, this edition highlights how the BRRRR strategy drives infinite portfolio scaling.
Kansas City Brooklyn BRRRR - GET PAID $1,963 TO OWN IT
📍 5437 Brooklyn Ave, Kansas City, MO 64130
💰 Purchase: $65,000 | Rehab: $57,750 | ARV: $185,000
🏠 Property: 3BR/1BA, 1,268 SF, HUD Home As-Is
🏦 Cash Out at Refi: $13,663 | Net Profit: $1,963 | Infinite CoC
BRRRR Mechanics Breakdown:
Phase 1: Acquisition | |
|---|---|
Purchase Price | $65,000 ($51/SF) |
Hard Money (85%) | $55,250 |
Down Payment (15%) | $9,750 |
Closing Costs | $1,950 |
Total Cash In | $11,700 |
Phase 2: Rehab (6 months) | |
|---|---|
Rehab Budget | $57,750 |
Hard Money Financed | 100% |
Holding Costs (6 months) | $6,537 |
Total HM Loan | $113,000 |
Interest Carry | $5,904 @ 10.45% |
Phase 3: Refinance | |
|---|---|
ARV | $185,000 |
Refinance @ 75% LTV | $138,750 |
New Rate | 6.8% for 30 years |
Pay Off Hard Money | $113,000 |
Pay Holding Costs | $6,537 |
Refi Closing | $5,550 |
Cash Out to You | $13,663 ✅ |
Less Initial Investment | $11,700 |
Net Profit | +$1,963 🔥 |
Post-Refinance Performance:
Infinite Return Reality | |
|---|---|
Monthly Rent | $1,290 |
Operating Expenses (19%) | $234/month |
New Loan Payment | $905/month |
Monthly Cash Flow | $86 |
Annual Cash Flow | $1,032 |
Cash Left in Deal | $0 |
Cash-on-Cash Return | INFINITE ∞ |
Forced Equity Created: $185K ARV minus $65K purchase minus $57.75K rehab minus $6.5K holding = $120,000 forced equity
30-Year Wealth Building: Year 1 cash flow $1,032 grows to Year 10 $8,383, Year 20 $17,047, Year 30 free-and-clear producing $30,000 annual income - all with ZERO dollars remaining invested
18.3% Cap Rate: On purchase price demonstrates massive value-add spread enabling refinance extraction while maintaining positive cash flow
Risk Factors: $57,750 rehab budget aggressive for full gut, 64130 zip has crime concerns requiring careful tenant screening, verify $1,290 rent achievable post-rehab
Recommended Strategy: Execute with $15K contingency buffer, monitor contractor closely, target $1,290 rent conservative to ensure appraisal, repeat with extracted $13,663 cash
Wall Street Isn’t Warning You, But This Chart Might
Vanguard just projected public markets may return only 5% annually over the next decade. In a 2024 report, Goldman Sachs forecasted the S&P 500 may return just 3% annually for the same time frame—stats that put current valuations in the 7th percentile of history.
Translation? The gains we’ve seen over the past few years might not continue for quite a while.
Meanwhile, another asset class—almost entirely uncorrelated to the S&P 500 historically—has overall outpaced it for decades (1995-2024), according to Masterworks data.
Masterworks lets everyday investors invest in shares of multimillion-dollar artworks by legends like Banksy, Basquiat, and Picasso.
And they’re not just buying. They’re exiting—with net annualized returns like 17.6%, 17.8%, and 21.5% among their 23 sales.*
Wall Street won’t talk about this. But the wealthy already are. Shares in new offerings can sell quickly but…
*Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.
Kansas City Benton Victorian BRRRR - $11K CASH-OUT ON MANSION
📍 917 Benton Blvd, Kansas City, MO 64127
💰 Purchase: $77,000 | Rehab: $81,070 | ARV: $250,000 (conservative)
🏠 Property: 5BR/3BA, 2,804 SF, Built 1900, 3-Story Historic
🏦 Cash Out at Refi: $25,014 | Net Profit: $11,154 | Infinite CoC
BRRRR Mechanics Breakdown:
Phase 1: Acquisition | |
|---|---|
Purchase Price | $77,000 ($27.50/SF) |
Hard Money (85%) | $65,450 |
Down Payment (15%) | $11,550 |
Closing Costs | $2,310 |
Total Cash In | $13,860 |
Phase 2: Rehab (6 months) | |
|---|---|
Rehab Budget | $81,070 |
Hard Money Financed | 100% |
Holding Costs (6 months) | $8,466 |
Total HM Loan | $146,520 |
Interest Carry | $7,656 @ 10.45% |
Phase 3: Refinance | |
|---|---|
Conservative ARV | $250,000 |
Refinance @ 75% LTV | $187,500 |
New Rate | 6.8% for 30 years |
Pay Off Hard Money | $146,520 |
Pay Holding Costs | $8,466 |
Refi Closing | $7,500 |
Cash Out to You | $25,014 ✅✅ |
Less Initial Investment | $13,860 |
Net Profit | +$11,154 🔥🔥 |
Post-Refinance Performance:
Infinite Return Reality | |
|---|---|
Monthly Rent | $1,950 |
Operating Expenses (17.8%) | $330/month |
New Loan Payment | $1,222/month |
Monthly Cash Flow | $300 |
Annual Cash Flow | $3,604 |
Cash Left in Deal | $0 |
Cash-on-Cash Return | INFINITE ∞ |
Forced Equity Created: $250K conservative ARV minus $77K purchase minus $81K rehab minus $8.5K holding = $91,930 forced equity
ARV Conservative Cushion: Recent comps show $280K-$365K range, using bottom 25% $250K ARV provides massive safety margin, realistic $280K+ likely
23.7% Cap Rate: On purchase price demonstrates extraordinary value-add spread, near World Cup 2026 venues creating neighborhood momentum
CRITICAL WARNING: $81,070 rehab budget TIGHT for 1900 3-story Victorian, contractor analysis recommends $95,000, requires $15K+ contingency buffer for unknowns
Comparable Reality: 1900 historic homes in area selling $280K-$365K post-renovation supporting conservative $250K floor with $30K+ upside potential
Risk Factors: 125-year-old 3-story structure has hidden issue potential (foundation, roof, systems), requires experienced rehabber, rent assumption $1,950 optimistic (market $1,700-$1,800 safer)
Recommended Strategy: Budget realistic $95K rehab with $15K contingency, hire structural inspector pre-close, target conservative $1,700 rent for appraisal safety, hold long-term for equity build
Vallejo 6-Unit - STRONG 11.7% COC WITH VACANCY UPSIDE
📍 111 Mahogany Dr, Vallejo, CA 94591
💰 Price: $895,000 ($149,167/unit)
🏠 Property: 6 Units (4×1BR, 2 Studios), 83% Occupied, Ferry Access
🏦 Year 1 CF: $29,406 | CoC: 11.7% | With Vacancy Filled: 16.8%
Key Metrics:
Critical Numbers | |
|---|---|
Down Payment (25%) | $223,750 |
Total Cash Required | $250,600 |
Year 1 NOI | $81,651 |
Year 1 Cash Flow | $29,406 ($2,451/mo) |
Year 1 CoC | 11.7% |
True Cap Rate | 9.1% |
Expense Ratio | 23% ✅ |
Debt Coverage | 1.56x |
Immediate Vacancy Opportunity: 1 vacant 1BR unit ready for $5-8K cosmetic update generating $1,800-2,000/month = $21,600-24,000 annual NOI boost
With Vacancy Filled: Cash flow jumps from $29,406 to $42,000+ annually, CoC increases from 11.7% to 16.8%, immediate execution value-add
Section 8 Stability: 2 of 6 units Section 8 providing guaranteed payment stability (33% portfolio) while 4 market-rate units enable rent growth upside
Ferry to SF Advantage: Vallejo Ferry Terminal proximity creates unique Bay Area commuter demand, Mare Island waterfront revitalization, strategic I-80 location
10-Year Wealth: $420,377 cumulative cash flow plus $119,053 loan paydown plus $303,181 appreciation = $842,524 total return on $250,600 investment
Low Expense Ratio: 23% operating costs exceptional for Bay Area, includes property management, demonstrates efficient operations and strong fundamentals
Risk Level: LOW - Strong debt coverage 1.56x, proven market demand 83% occupied, Section 8 provides income floor, ferry access durable long-term
Recommended Strategy: Counter $875K ($20K below ask) using vacancy loss as justification, fill vacant unit immediately for 40% cash flow increase, hold 10+ years
Las Vegas AVA 16-Unit - TURNKEY STABILITY
📍 415 S 10th St, Las Vegas, NV 89101
💰 Price: $3,299,999 ($206,250/unit)
🏠 Property: 16 Units (All 1BR/1BA), 100% Occupied, Fully Renovated
🏦 Year 1 CF: $44,105 | CoC: 4.1% | Down: $1,089,000
Key Metrics:
Critical Numbers | |
|---|---|
Down Payment (30%) | $990,000 |
Total Cash Required | $1,089,000 |
Year 1 NOI | $228,527 |
Year 1 Cash Flow | $44,105 ($3,675/mo) |
Year 1 CoC | 4.1% ❌ |
True Cap Rate | 6.9% |
Expense Ratio | 13.6% ✅✅ |
Break-Even Ratio | 79.2% |
Premium Pricing Problem: $206,250/unit downtown Vegas Class A positioning creates institutional-grade pricing where $1.089M investment produces only 4.1% return barely beating high-yield savings accounts
Exceptional Efficiency: 13.6% expense ratio lowest seen in entire analysis, gated property with simple 1BR unit mix, but efficiency cannot overcome poor yield
Zero Value-Add: 100% occupied at market rents ($1,450/unit), fully renovated turnkey, cannot raise rents or cut expenses, locked into 3% organic growth only
Opportunity Cost Analysis: Same $1.089M capital deployed into 4-5 Kansas City value-add properties produces $100K+ annual cash flow at 10-15% CoC versus this 4.1%
Who This Works For: High net worth investors seeking stable low-maintenance downtown Vegas exposure, willing to sacrifice yield for Class A stability and appreciation bet
10-Year Wealth: Year 10 cash flow $115K annually with $2.9M equity, but represents capital preservation play not aggressive wealth building
Risk Level: LOW operational (turnkey, gated, 100% occupied) but HIGH opportunity cost (4.1% return on $1.089M unacceptable for growth investors)
Recommended Strategy: PASS unless portfolio already includes high-cash-flow properties and seeking defensive asset, redeploy $1.089M into multiple BRRRR deals with infinite returns
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