Your First BRRRR Deal

beginner 10 min read

Walk through analyzing a rental hold from finding the deal to filing a retrospective.

Step 1 of 6

Finding the Deal

You find a 3BR/2BA ranch listed at $145K in a neighborhood where renovated homes sell for $210K-$225K. It needs a full kitchen and bathroom renovation, new flooring throughout, and exterior paint.

Try it in Kaison

Run a Quick Check at /underwriting with: Purchase $145K, ARV $215K, Rehab estimate $40K, LOC rate 9%.

Key concept: After Repair Value (ARV)

Step 2 of 6

Understanding the Quick Check Verdict

Kaison returns STRONG LEAD. Cost basis estimate: $195K (target), $209K (P90). That's $20K equity at target, $6K at P90. The deal has potential but thin P90 margins.

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Click 'Run Full Analysis →' to dig deeper.

Key concept: P90 (90th Percentile Adverse Scenario)

Step 3 of 6

Building the Rehab Scope

In full analysis, break down the $40K: Kitchen $15K, Bathrooms $8K, Flooring $7K, Exterior $5K, Contingency $5K. Kaison applies the P90 buffer on top of your contingency.

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Enter line items in the Rehab Scope section.

Key concept: Scope of Work (SOW)

Step 4 of 6

Reading the Results

Full analysis returns: Score 74, Verdict GO. CoC: 11.2% (target), 5.8% (P90). DSCR: 1.31 (target), 1.12 (P90). One HIGH flag: 'Thin equity margin' — P90 equity is 2.8% of ARV.

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Review the deal score breakdown and risk flags.

Key concept: Deal Gate (GO / MARGINAL / NO_GO)

Step 5 of 6

Making the Decision

The deal is GO but fragile. P90 CoC drops to 5.8% and equity is dangerously thin. You could: (a) negotiate a lower purchase price, (b) tighten the rehab budget, or (c) verify ARV with more comps. Each $5K reduction in purchase price adds ~2.3% to P90 equity.

Try it in Kaison

Try running scenarios at /underwriting with different purchase prices.

Key concept: Equity

Step 6 of 6

After the Deal: Filing a Retrospective

Six months later, the deal is done. Actual rehab: $44K (10% over). Actual timeline: 5.5 months (vs 4 estimated). Actual rent: $1,750 (vs $1,800 estimated). The deal worked but your estimates were optimistic. Filing this retrospective teaches Kaison your tendencies.

Try it in Kaison

File a retrospective at /retrospectives with actual numbers.

Key concept: Variance Learning

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Educational content only. Consult a CPA or attorney for advice specific to your situation.