Buy and hold rental property strategy assumes you buy something near turn key with cash or financing and just rent it out.
BRRRR assumes you'll buy a property at a discount that needs rehab, rent it out, and then later refinance the property to get your invested money back out. This can be done because you are improving the property value with the repairs, so when the rehab value is high enough, a refi cash out recaptures the out of pocket money you used to buy the house. Then you can take that recaptured money and go do it again somewhere else. So, the BRRRR has to account for the original financing, repairs, and the refinancing.
Columbus, OH · Member since 2018 · 8 posts · 13 votes
8y
Is there a calculator that is better for an owner-occupied situation? If so, how would one account for that in the calculator?
Say the property is a duplex and I as the owner live in one, that would leave only one unit bringing in income, correct? I know this would be important before analyzing a property.