Updated 1 day ago on . Most recent reply
Real Estate Investment Strategy
My favorite residential real estate investment strategy is the BRRRR Method.
Example:
Buy a property for $150,000.
Put $50,000 into renovations.
Total investment: $200,000.
After repairs, the property appraises for $300,000 and rents for positive cash flow.
Then refinance at 75% LTV:
$300,000 × 75% = $225,000
You get a new loan for $225,000, pay off your original financing, and recoup your entire $200,000 investment plus closing costs.
Now you own a cash-flowing rental property + equity, with little to none of your own capital left in the deal
Buy. Rehab. Rent. Refinance. Repeat.
Do that enough times and you can build a substantial portfolio without constantly coming out of pocket for new down payments.
The key is buying well below market value, 70% of the after repair value minus repair costs, and creating equity through renovations.