Unsure of what to do
Looking to start building a small real estate portfolio for supplemental cash for retirement. I currently have a home that I owe less than $20,000 on the mortgage, but I want to keep the home as an asset and buy a new primary residence. My current home is in need of upgrades in order to maximize the potential rent. Would the BRRRR method be the best way to get my equity out to help pay for the new home and renovations on my old property.
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#2 Out of State Investing Contributor
- Flipper/Rehabber
- Pittsburgh
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#2 Out of State Investing Contributor
- Flipper/Rehabber
- Pittsburgh
maybe... but it sounds like you're saying you'd BRRRR your own house, keep it as a rental, and then use the proceeds to buy a rental? so, entirely with borrowed money? or some other way? and where do you live if you do that?
note that the margins on LTRs have been compressed recently and they really don't generate income or 'supplemental cash' as you put it any more. there are other benefits - tax benefits, mortgage paydown, etc. - but no 'cash flow.' (really important note: anyone who uses the term 'cash flow' is selling something. i am not.)
you should read these threads. these are by SUCCESSFUL INVESTORS. and they aren't sugarcoating or cheerleading - they're being honest about the challenges of the market.
Welp that's it, I'm selling out
I can't be the only one that's had a change of heart about rentals
hope this helps
happy to dialogue further
have done several BRRRRs
they're very difficult and a huge pain