Landlording & Rental Properties

How to Make $100k a Year with Fixer-Upper Rentals

Expertise: Landlording & Rental Properties, Personal Development, Real Estate News & Commentary, Business Management, Flipping Houses, Mortgages & Creative Financing, Real Estate Deal Analysis & Advice, Real Estate Wholesaling, Personal Finance, Real Estate Marketing, AskBP, Real Estate Investing Basics
593 Articles Written

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free

Some people work so hard to make money. Whether it’s a nine-to-five job they hate or a thousand side hustles that go nowhere, it’s easy to see why the path to making $100,000 (or more!) per year can be long and winding—and making that kind of money feels impossible. At BiggerPockets, we think building wealth through real estate is the smartest strategy. But still, it’s no slam dunk. Investors can flip dozens of homes and deal with hundreds of tenants—and don’t forget the endless fires needing put out.

Sounds exhausting, doesn’t it?

There’s an easier way. Within five years, you could be making $100,000 annually from just two real estate transactions per year.

Sound too good to be true?

Today, I want to teach you about the BRRRR strategy and the power it can have in your real estate investing. I'll also walk you through a step-by-step plan for making $100,000 per year using this powerful investing plan.

First: What do you need to make six figures?

Making $100k a year doesn’t require years of experience—or even a college degree. It doesn’t require signing up with an affiliate marketing company, or starting an online business selling homemade goods on Etsy… or drop-shipping via Amazon. Yes, all of these strategies could build you wealth, but here at BiggerPockets, we believe there’s no better source of long-term wealth than real estate.

So what do you need to get started?


That’s it: Drive. We can break that down into a few sections. First, you have to want to succeed. Killing it in real estate probably requires more effort than your nine-to-five—at least in your first year. But that hard work pays off in dividends, creating a truly four-hour-a-week career after a couple years of dedication.

You also need to take charge of your personal finance. Why does it matter if you make a six-figure income if you’re bogged down in debt, or struggling to curb a dangerous spending habit? And when you’re investing in real estate, personal finance is doubly important. Lenders care about how much debt you have—and if your debt controls you, not vice versa, they’re less likely to lend you money.

Can you bounce back from difficulties quickly?

Understanding the BRRRR strategy

The simplest, easiest—and fastest way—to drive your real estate investing business into the six figures is with BRRRR. No, it doesn’t mean buying properties in chilly locales—it’s an acronym for a popular investment strategy that’s easy enough for first-time investors to follow… but advanced enough to create serious cash flow. You don’t need a bachelor’s degree, and you can start while still holding down your day job.

Let’s get to know BRRRR—or:

  • Buy
  • Rehab
  • Rent
  • Refinance
  • Repeat

This strategy involves buying fixer-upper rental properties, repairing them, leasing them out to great tenants, refinancing to get your money back… and then repeating the process over and over again. With this strategy, you can acquire numerous properties without running out of capital to invest. At the same time, it combines the benefits of house flipping with the wealth-building characteristics of rentals.

Let’s break down the strategy for you and look at each step. And don’t worry: We won’t leave you stranded. We’ve highlighted the best BiggerPockets resources to take your knowledge to the next level.

Ready to learn more about BRRRR? Check out BiggerPockets detailed guide: How to Invest in Real Estate Using the BRRRR Method. Here, we break down the method’s advantages and disadvantages—and walk you through each step in detail. 

1. Buy

The first step in the process is to buy a great deal. Not just any deal—a great one, in a great location and neighborhood. But it needs to be a fixer-upper, and for this strategy, we’d recommend a single-family house, not a duplex, triplex, or apartment building.

BRRRR investing is very similar to house flipping. In fact, it is house flipping—but rather than selling, you rent it out after fixing it up. But you need to understand the same principles that go into house flipping.

The 70 percent rule is used by many house flippers, and it's key to getting a good price—and leaving room for the unexpected. This rule states that the most a flipper should pay for a property is 70 percent of the after repair value (ARV), less rehab costs. The ARV is what a home should be worth when it’s all fixed up.

So a house that has an ARV of $150,000 and needs $30,000 worth of rehab could be bought for $75,000 because:

  • $150,000 x 0.7 = $105,000
  • $105,000 – $30,000 = $75,000

Think that’s impossible to achieve? Just ask most successful house flippers, and they’ll tell you that their entire business model is built on similar margins. So stop saying, “I can’t do this” and start asking “How can I do this?”

Because I can teach you how.

Finding good properties may require direct mail. It may require Craigslist. It may require driving for dollars. It's going to take some hustle. But you can do it.

To finance this first purchase, it's unlikely you'll be able to use a traditional lender, because most lenders are unwilling to loan money for a fixer upper. This means you are probably looking at options such as hard money, private money, cash, home equity, and other strategies that I outline in The Book on Investing in Real Estate with No (And Low) Money Down. If you haven’t read that yet, start there. It’ll change your life.

Related: Investors: Memorize These 11 Real Estate Metrics Now

2. Rehab

The next phase in the BRRRR strategy is fixing the property up. Unlike with traditional house flipping, this property will be rented out for a period of time. The materials you use should reflect that reality.

Let’s use a BRRRR property I’m currently working on as an example. When my crew tore up the carpet, we discovered beautiful hardwood floors underneath. While this seems great… I’m actually not going to refinish them, yet. That would cost me around $3 per square foot—or $3,000 total. Someday, when I do want to sell the property, I’ll probably have to refinish them again because of the heavy tenant usage. And that’s if I can refinish them again. After all, you can only refinish floors so many times.

Therefore, I’m going to use laminate wood floor throughout the entire home. This will protect the floors, cost around $2 per square foot, and look amazing. Before I sell, I’ll remove the laminate and finish the floors to sell for top dollar.

The key to rehabbing a BRRRR property is to make the property as “tenant-proof” as possible by using long-lasting materials. When rehabbing, aim for the highest ARV and monthly rent possible. If you can turn a two-bedroom home into a three-bedroom home, do it! This can add hundreds of dollars per month in cash flow and thousands in equity.

You could do all the work yourself or you could hire it out. That’s up to you and dependent upon your skills, availability, and desire. DIY saves a lot of money, increasing the odds you’ll find a deal that has numbers that work. But it will also take a lot of weekends and evenings.

3. Rent

Next, it’s time to rent the property out to great tenants. Luckily, you just bought a property located in a great location and rehabbed it to look brand new. It shouldn’t be hard to find incredible renters.

And because the property was rehabbed at the start, your repairs and capital expenditures, like roof, siding, and paint, should be fairly low for the next few years. Everything has already been fixed! Of course, you’ll still need to budget for repairs and maintenance, but it should be much less than you thought.

Then, it's time to rent the property out. You might choose to hire a property manager, but because you already rehabbed the property and because you are renting to high-class, great tenants, managing a BRRRR deal shouldn't be too hard. I recommend saving the money and doing it yourself.

promotion for how to become a landlord guide

Purchasing your first rental property is just the beginning of your real estate journey, because being a good landlord is almost as important as making good deals. BiggerPockets’ free guide How to Become a Landlord: Managing Rental Properties for Real Estate Investors will teach you everything—from setting rent to handling evictions.

Now, to say something a little controversial: The goal of the BRRRR strategy is not to make a ton of cash flow. I know, I know—that goes against almost everything I’ve ever preached. And I’m not saying to buy something that won’t cash flow. I won’t ever accept long-term negative cash flow. Ever.

However, properties that only cash flow a little bit might be okay with the BRRRR strategy. The power of the BRRRR strategy is in the long-term “flip”—the equity built. I’ll explain this more in a bit.

But first, let’s talk about the next “R.”

Related: How to Rent Your House: The Definitive Step-by-Step Guide

4. Refinance

Like I said earlier, it’s tough to get a conventional mortgage on a fixer-upper. However, conventional mortgages are really nice—low interest, long term, easy. You likely won’t be starting with a conventional mortgage, but the goal of BRRRR is successfully refinancing into that nice, conventional mortgage… and getting all your money back. (Woo hoo!)

Of course, you don’t need to refinance the property to get your money back. Perhaps you make great W-2 income and can afford to let your down payment and rehab money stay in the property. This does mean better cash flow, and perhaps even a better ROI. However, most investors want their money back so they can do it again and again.

Here’s how.

Let’s go back to those numbers from earlier. Our property that had an ARV of $150,000. We purchased it for $75,000 and put $30,000 into the rehab. At this point, we have $105,000 into the purchase.

Most lenders will allow you to refinance a property for 70 percent of the ARV. In other words, they will lend 70 percent of the property’s loan-to-value (LTV) ratio. Well, it just so happens that 70 percent of $150,000 is $105,000… so we could theoretically get back 100 percent of our invested capital.

That's right—we're going to refinance this property with a low-interest, 30-year fixed mortgage for $105,000. This will pay back any loan we took out for the original purchase and rehab costs. In this example, closing costs are the only out-of-pocket funds required.

After the refi, you should have a completely stabilized rental property with a little bit of cash flow—and 30 percent equity. Plus, you’ll have all your money back, so it’s time to…

5. Repeat

It worked once, and we got all our money back, so why not do it again? And again? And again…

Sure, at some point the bank will stop refinancing the properties for you. And maybe you’ll need to find another solution, like a portfolio lender or a partnership. But it CAN be done.

With each new deal, you gain 30 percent equity and get cash back in your pocket.

How to make $100k per year in real estate

Now that we’ve covered the five steps of the BRRRR strategy, let’s see how someone could make $100,000 per year using this process.

Historically, real estate prices climb around three percent per year, on average. Yes, some years are better and some worse—but over time, this holds true. Still, let’s be a bit more conservative and say two percent per year.

Say we bought a property today with an ARV of $150,000… but at a purchase price of just $75,000. Nice going, us! Then we rehabbed it with $30,000 and refinanced it for $105,000. Then we rent the property out. At a two percent increase per year, this property could be worth $165,000 five years from now. At the same time, our tenants’ rent payments would help pay down the loan, decreasing the balance to just $96,000.

In other words, after five years, we would have $69,000 in equity.

Of course, if we went to sell the property, it would likely need another coat of paint and maybe some other minor fixes. Plus, we’d have to pay the real estate agents about $10,000 as commission. And then we’d pay a few thousand in closing costs. So that $69,000 in equity would look a lot more like $50,000 in profit.

Therefore, to make $100,000 per year using the BRRRR strategy, you simply need to buy two deals each year—and starting in year five, begin selling two each year. You’ll never have more than 10 properties using this strategy, which is a pretty manageable number. (Many conventional mortgage lenders also limit borrowers to 10 loans.)

Related: Quit Your Day Job and Find Financial Freedom: Here’s How to Become a Real Estate Investor (Full-Time!)

After five short years, you’ll be making six figures by just doing two purchases and two sales per year. Now, that could truly be a “four-hour workweek.”

If you want to take that $100,000 per year and quit your job—you could. You could buy an airplane! You could go to Tahiti. Or…. you could recycle that money and turn that $100,000 into millions.

Want to learn more about real estate investing? Subscribe to the BiggerPockets Podcast for more real-life stories from investors just like you. 

The biggest drawback to the BRRRR strategy

So what’s the catch?

As with all investments, there are a few drawbacks. There is one big, looming question that you may have already asked: What if you can’t refinance? This could happen for a number of reasons—but most of the time, it’s because you’re not an ideal borrower. You carry too much debt, or your credit score is low. These things are easily fixed.

However, if you are unable to refinance the property to get your money back out, you’re stopped in your tracks.

Luckily, this problem can be proactively prevented most of the time. Before diving into BRRRR, visit a few local banks and ensure you’re a good enough borrower before you ever purchase the first deal. Fix your credit in whichever ways they suggest so you’re in ship-shape for BRRRRing.

Of course, if you are still unable to refinance after rehabbing, you could always wait until the tenants' first-year lease is over and sell the property. Having multiple exit strategies is always a great thing and one of the perks of the BRRRR strategy.

Other drawbacks include:

  • What if the tenant destroys the house?
  • What if you can’t find a good enough deal?
  • What if you can’t finance the original purchase?

These are legit questions, but the cool thing is that there are answers! Investors ask these questions every day in the BiggerPockets Forums. Don’t miss out on one of the most powerful tools you have at your disposal—make an account and start learning from experienced investors.

The BRRRR strategy has a lot of moving parts, but if you work it right, it can be a powerful ally in building serious wealth. This strategy combines the equity growth of flipping with the tax benefits, cash flow, and appreciation of rental properties—maximizing your profit.

Get started today.

How did you get started in real estate? Sound off below.

Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He is a nationally recognized leader in the real estate education space and has tau...
Read more
    Courtney Jurasko from Los Angeles, CA
    Replied about 3 years ago
    Oh wow! I didn’t realize until I got to the end that you’re the same Brandon Turner whose audiobook I’ve been listening to on my trips to and from LA from where I live in the Central Valley of CA. I’m almost done with getting my real estate license and I can’t tell you enough how much I love your book! You’ve definitely inspired me and I appreciate your input so much! Thanks Brandon!
    Christopher NA
    Replied 5 months ago
    I think 98% investors will be stopped in the first step: deal, deal, deal.....
    Christopher Stacy Rental Property Investor from Wiesbaden Germany
    Replied almost 3 years ago
    I couldn’t read all of the 115 comments so I’ll have to apologize ahead of time if this question has already been asked. For the initial deal, are we talking about refinancing from a hard money lender to a conventional bank loan or something else? I think this is the piece missing from the scenario that I can’t get my head wrapped around. Thanks!
    Sean Rana New to Real Estate
    Replied 5 months ago
    Yes I believe that is what he was referring to. This is because it is hard to get a loan from a traditional lender for a fixer upper, so you will have to go to a hard money lender. But because those lenders do take more risk, they will have stricter terms and perhaps higher interest rates in general. It should still be manageable, but it is definitely not as great as a traditional loan. After you rehab it and rent it, the value of the property goes up significantly to both investors and lenders because the property can also secure some form of income. As a result, if you refinance it with a traditional lender, you will get a better loan(which is one of the big reasons why people refinance in the first place).
    Ronald Daley from Homewood, Illinois
    Replied over 2 years ago
    I am a few years late, but excellent post! Very informative. Thanks Brandon!
    John Murray from Portland, Oregon
    Replied over 1 year ago
    Great information! I’m a BRRRR guy and purchased as much as I could in metro Portland Oregon. Purchased my last REO about 2 years ago. I have 8 left and when a tenant moves I flip it. The benefits are no earned income (no SSI too), $80K Fed pass on capital grains (keep AGI low) and the big one depreciation on rentals wipes out recapture. This is a no brainer when you enter a market on the rise. You have to purchase about 20-30% below market and refinance after the seasoning period. One word of IRS caution you must reinvest the proceeds back into real estate until the property is terminated and then you have to settle with the IRS and your state. This applies even when you refinance your present abode, no trip to Mexico. If you Itemize the IRS does not like your trip to Mexico.
    Brittney Lundeen Real Estate Agent from Minneapolis, MN
    Replied over 1 year ago
    Great strategy! I’m currently reading David Greene’s BRRRR book and LOVE it! My question is, what do you do after you’ve refinanced a handful of properties? Isn’t there a maximum amount of loans you can have?
    Joe Rogan Investor from Los Angeles, California
    Replied 6 months ago
    By the time you reach that maximum number of loans you will know what to do, I promise. We all too often get sidetracked with future steps just focus on the first then second step, it will all fall in place. Hope you've made some steps!
    C.L. Arrington
    Replied over 1 year ago
    Hello everyone, I’m a newbie to real estate investing. I currently have a home sitting on a little over quarter acre of land. However, a leaking roof has caused considerable water damage to the floors and walls inside of the house. (Side Note: There’s also an underground basement inside the house) My Question: Would it be cost effective to rehab the current structure ( gutting the inside and fixing up the outside ) or to tear down the house and build a tiny home of one form of another in it’s place?
    Pathik P. Investor from New Jersey
    Replied 4 months ago
    Hey C.L. I'm in the same boat as you were a year ago, and I hope you got the answer to this already, but I'll reply anyway. From my understanding of BRRRR, you're actually in a great starting position as you already have a home and don't have to factor in how to finance that "subject" property. At this point, you'd just need to calculate the rehab costs, get a tenant to prove that it's income generating, then refinance it to a conventional loan. You should be able to get conservatively 70% of the ARV back (of course this will involve an appraisal of the rehabbed property and will require letting the tenant know about the appraiser stopping by). You'll just need to compare your overall return if you rehab vs build fresh. You'd be starting off with 30% equity in the rehabbed property if you can get it refinanced plus cash to repeat the process, or maybe the new property will get you better cashflow. At that point it's a personal choice how you want to proceed. Tip: Definitely start working with banks well in advance to build a relationship and get them in on the plan, which ever way you choose to go. Don't want any surprises from banks denying or pulling out from something they didn't expect.
    Account Closed
    Replied over 1 year ago
    I couldn’t read all of the 115 comments so I’ll have to apologize ahead of time if this question has already been asked. For the initial deal, are we talking about refinancing from a hard money lender to a conventional bank loan or something else? I think this is the piece missing from the scenario that I can’t get my head wrapped around. Thanks!
    Jeffrey Bower
    Replied over 1 year ago
    This is a great strategy and want to see if this would work where I am interested in purchasing.
    Arya Jackson from San Francisco, Bay Area
    Replied over 1 year ago
    Brrrr is a great strategy that I've researched a lot and have been wanting to get into. Thank you for this information!
    Anita Effendi Realtor from Corona, CA
    Replied over 1 year ago
    Hi Brandon! I am in the beginning stage of BRRRR -- anyone has any referrals for Refinance part in CAlifornia ? Non-traditional financing since I cannot pass under normal guidelines. :)
    John S Lewis from Jackson, NJ
    Replied over 1 year ago
    Hi @Brandon Turner. I did the BRRRR last August, on my first deal. I've been struggling to find another good one like that here in NJ. I did do a wholesale deal and I'm now in a flip though. Onward and upward. The biggest hurdle for me going forward is the re-fi though. Because I no longer have 9 to 5, the banks typically don't want to hear from me because I have no w-2 income. So I'm always on the lookout for asset based lenders. Thanks for reviving this article!!
    Pathik P. Investor from New Jersey
    Replied 4 months ago
    Hi John, I'm actually starting off in NJ as well and looking to go down the BRRRR path. Would love to connect and share thoughts. I'm also doing this as an LLC so slightly different (and probably tougher) situation with banks working with me.
    Tamara R.
    Replied over 1 year ago
    Is there any tricks to getting closing cost down on the refi? Mine ended up being 5-8,000$ which if your only able to pull 30,000out that can be almost a third of it. Should you do a heloc instead?
    Kyle Chadwick
    Replied 6 months ago
    Hi Tamara!! If you're using the BRRR method for investment properties then you probably won't be able to use a HELOC to replace the cash out refi. Most financial institutions will only do Home Equity/HELOC's on owner occupied primary residences. Hope this helps answer the question!! 😊
    Russell Grevler
    Replied 11 months ago
    Did anyone answer this?
    Kevin Coleman
    Replied over 1 year ago
    Absolutely LOVE the BRRR method! Started doing it before finding Bigger Pockets and realized it was a thing. It made so much sense I wondered why everyone wasn't doing it. I was able to pull enough equity out of one deal to pay off the balance on my personal mortgage. I now have a HELOC which I now use to "pay cash" for properties - and repeat. (I do have the advantage of having construction experience and the ability to self-perform much of the rehab work to further leverage the process.) Recently left my "9 to 5" and beginning my search for lenders who will lend based on the cashflow of the deal and not just a W-2. Thanks Brandon and Bigger Pockets Community for the affirmation of the the method and providing unbelievable resources!
    Michele Emerick
    Replied about 1 year ago
    Love this post. I read most of the BP articles that show up in my email. They always seem to be on point with what I'm wrestling with at the time. What's equaly (in my eyes) as important though are the posts at the end where people who have tons of experience are incredibly patient with us newbies and set us straight on what we don't know. The more I research investing in real estate, and read about different ways my portfolio can go, the more I realize how little I know. Thank you so much for sharing your experience/wisdom. It does take time, and one person said they needed a nap after their post. I hope you got your nap. I am eternally grateful to BP and to the experienced investors who take the time to explain step by step how this stuff works. I am, at this point, frozen as far as what way to go with my portfolio but this article opens up some possibilities. Thanks, Brandon and all the others who posted.
    Regina Story Realtor from Alabama
    Replied about 1 year ago
    The original post goes back several years so I was unable to read every response, but I read some of the original ones and then skipped down to the more recent posts. One in particular stood out because it had hogwash in captial letters. I have to emphatically disagree. I can attest to the fact that this strategy DOES work! Will it fall into your lap? Most likely not. You will have to put effort into any plan you decide to follow. That means start at the beginning and buy the property correctly. That can not be overlooked. IF you do not buy the property correctly, you will just have a headache in perpetuity, until you unload the property(don't ask how I know this--LOL!!!). So that said... It seems that the majority of follow up questions concerned the refi. And that will be your first problem if the purchase was not made for the right price and you have put too much into the remodel. Those numbers have to be predetermined and followed. I digress, back to the issue at hand, the refi and where to find the right lender to assist you. I would suggest that you develop a relationship with a financing person, not an institution. I sat down with my banker(who I have a relationship with and he knows me) and discussed my plans with him. I actually heard this on one of the BP podcasts-he just went in and talked to his lender. So I did that! He gave me a LOC, not a HELOC, but a business LOC. No problem at all getting it all in our business name. We purchase all our properties under our business name and as soon as the property is remodeled and ready to rent, we have it refinanced(in our business name) at 70% of appraised value with a low fixed interest rate at 30 yrs. No seasoning period. How did I do this? I went in and opened a dialogue with him. I stay in contact with him monthly, but more like weekly. We started slow with just one property. We built his trust in our business decisions and strategies and he is totally on board. We have, at times, hade three projects going at once. We are now looking at multi family and I did the same as before. I went in and sat down with him and told him my plans and asked his opinion and he is on board! He knows we are not going to do anything foolish and will do all our homework before coming to him with a project, but he has assured me that the money is there when we need it. I go to him with facts and numbers and show him I have down the research and have a good investment for him to back. You may have to work to find a lender like mine! But they are out there.
    Anthony Shavies from Springfield, MO
    Replied about 1 year ago
    Thank you so much for that info Regina. I’m going to find a finance person to talk to about my plans!
    Matthew G. Hylton New to Real Estate from Columbus, OH
    Replied 10 months ago
    Do you recommend a small local bank or a large national institution?
    Emily Ford Investor from Southlake, Texas
    Replied 4 months ago
    For what Regina Story is referring to - small local banks - always!!! Tip - get a list of your local banks. Call the banks first and ask to talk with their business lender. Ask that person if their bank lends on RE investment properties - many may not. The ones that do, ask if you could schedule a time to come in and discuss opening an account and doing business together.
    Rob Ross from University Place, Washington
    Replied about 1 year ago
    My question is regarding the last R, the refi. Aren't lenders going to want 20% down since this is going to be a rental property?
    David Braut Rental Property Investor from Grass Valley, CA
    Replied about 1 year ago
    The idea is that you are refinancing at 70% of ARV. So you “created” this equity by buying right and by doing the rehab. There is no down payment since it is a refinance on a house you already own.
    Gary Reese Investor from Bethel Park, Pennsylvania
    Replied about 1 year ago
    I'm a little further down the road with my investing; have around 20 houses. Would this strategy work if I just refinanced two of my properties every year on 15 year mortgages? That way I would just roll my existing houses, and not worry about finding deals or taking on marginal deals. Thanks
    Duncan Hayes Rental Property Investor from Detroit, MI
    Replied about 1 year ago
    Will be implementing this strategy with small MF properties in the metro Detroit area. Will keep all posted on my journey.
    Ammon Hoover from Aurora, CO
    Replied about 1 year ago
    Why are there comments from 4 years ago when the article says it was just written? Can we please put a REAL written date on the articles Please?
    Eva Maro
    Replied 10 months ago
    I wondered the same thing...? Perhaps it was recently refreshed..? Please make the posting and edit dates clear so we’d know how relevant it is.
    Don Taylor New to Real Estate from Raleigh, NC
    Replied about 1 year ago
    I literally read every comment on this page. Thanks for the tips everyone
    Victor Perez
    Replied 11 months ago
    I love this strategy. I will put it in practicefor my first deal.
    Patterson Seney
    Replied 10 months ago
    Thanks for sharing your strategy. This is what I envisioned when I got into Real Estate but I’ve encountered some set backs that’s push me back. I want to do it better this year and learn from my mistakes. Unfortunately, my rental properties are in Detroit and I live in MA. Can I get some guidance here to be more effective in this field?
    Russ Wahl Contractor from Saskatoon Saskatchewan
    Replied 9 months ago
    We are under contract with our first Duplex, one side has a tenant paying regularly. The other side has been gutted. We are going to take what we’ve learned and BRRRR this place! Wish us luck!
    Max Loi from OUT OF STATES
    Replied 9 months ago
    How can I use brrrr strategy if I live on out of us? I cant refi
    Kohl Crump
    Replied 9 months ago
    When you usually ask for a refinance doesn't it mess with the loans amortization schedule!!! meaning your initial property you purchased gets little to no principal pay down over time if you have a tenant!!!
    Pathik P. Investor from New Jersey
    Replied 4 months ago
    If I understand BRRRR correctly (I'm still researching and learning), you ideally buy first fixer upper cash. Most can't do this so you aim for a short term/bridge loan. This usually means Hard Money Lender/Private Money Lender/Community Banks, etc. It'll be assumed that you're getting a much higher rate and shorter pay back period. Brandon recommends 18months JUST IN CASE when you choose to refinance, they require seasoning of 6-12 months. The idea would then be to refinance into a conventional long term mortgage, that pays you back 70% ARV and gives you 30% equity already in the property (assuming you bought the property and rehabbed correctly). I don't think the idea here is to finish the short term loan's schedule, but to get out of it as soon as possible by refinancing. It's just being used to help you get into that initial property so you can fix it up and raise its value for the proper mortgage and cash out refinance so you can repeat the process!
    Neema Nene from Manassas, Virginia
    Replied 9 months ago
    Brandon, Thank you so much for your wonderful articles. I've been doing this BRRRR strategy since 2012 and didn't name it as such. In 2018 I took few of my properties and used the equity in them to buy 7 properties at once and actually got paid at closing. I used the portfolio loans to do this. Now I want to move to the next step and would love to chat with you. How do I connect with you?
    Shaunda Stewart
    Replied 9 months ago
    I am ready to start what should I do first...
    Mark Leclair Rental Property Investor
    Replied 8 months ago
    Brandon, Like the post and from one of your webinars I’ve seen before I always remember in the back of my mind “it doesnt take a lot of real estate to make money, just the right ones”. Always in the back of my mind and exactly why I DO NOT get emotional on any deal. Thank you for everything.
    William Johnston
    Replied 5 months ago
    I did this BRRRR, thing back in the 70's, and later in the 80's from what I learned from Robert G. Allen, from his book Nothing Down.
    William Johnston
    Replied 5 months ago
    As a 40+ year investor, I've downsized to cheaper properties, those under 50K. Just as much profit, a lot less work. Problem is finding financing for under 50k property.
    Sean Rana New to Real Estate
    Replied 5 months ago
    Hi, Very interested in what you've done, downsizing to cheaper properties. I've read about some posts that talks about why not to invest in cheaper properties. Can you share how you make it work? How does everything look for you with regards to the future of those properties? What markets do you look at? Thank you so much !
    Bryan Bentle
    Replied 5 months ago
    I love the idea, but I assume that the purpose of this plan is to be able to retire/leave the rat race. The fly in the ointment seems to be that without (proof of) income, a cash out refi can be difficult at best. I have read about asset based mortgages, but wondered if anyone had a better solution.
    Pathik P. Investor from New Jersey
    Replied 4 months ago
    I've read about the same issue. The only common answer I find is to work with smaller community banks/portfolio lenders that do just that.... look at asset versus income. I personally want to avoid hard money and private money lenders simply due to rates/schedules and because I want to hold for long term.
    Alimgadji Cherevkhanov
    Replied 5 months ago
    Offering the seller half of what it's potentially worth isn't a great deal it's an insult.