Question on the “repeat”part of BRRRR

6 Replies

New to the investor world. Plan on using the BRRRR method.

I'll be using funds from a HELOC on my primary for a cash purchase and to pay for rehab.

My question is, once I refi after the rehab is complete, I use those funds to pay off my HELOC balance I used to purchase and rehab, correct? I would then have the HELOC money plus excess equity (leftover from refi) available to use again to purchase another property, correct? I would then have a HELOC and conventional loan to pay back (from tenants of course), correct? Just repeat this as many times as possible?

If I have this wrong, please correct me because I am somewhat confused by this part of the process.

Thank you.

@Jason D.

Sounds like what I thought.

So you just endlessly have loans, which are being paid off by the tenants, which builds equity, plus your monthly cash flow from each property, and all the while you’re accumulating more properties (compounding monthly cash flow) which is the name of the game.

Sound correct?