Using the BRRRR strategy

4 Replies

I've been following BP for some time now. I'm most intrigued about the BRRRR strategy. My current home has an equity of $85K and I'd like to invest that equity in more than 1 multifamily property. However, I'm not sure about how to execute this???

Newbie needs advice.

Hey @Elizabeth Tiburcio ! Have you read @David Greene 's latest book on BRRRR?

If you are looking to use a HELOC or want to refinance your home to get the equity, youll likely need to maintain 20-25% of the equity in your home. Im not sure of your homes value, but how much of a % does $85k make of your homes value?

Hello Jake. Thank you for the insight. Will look into purchasing the BRRRR book for sure. The $85K is the entire equity. The 20-25% difference would drop to about $60k to invest. I believe my home is averaging a value of $230K.

I guess my real question is: What is the best use of the $60K if I am looking to increase cash flow ?

OMG! I just discovered the answer to my question. I stumbled upon BT's article on the BRRRR strategy and book "How to Invest with No or Little Money Down". The 70% rule was the answer to my question. Now I know: what to read and what to look for in a property.

I'm starting to feel empowered. 

Thanks Jake and Brandon. :-)

@Elizabeth Tiburcio I'm glad you able to locate the answer to your question. The most important thing you do first is to invest in your self meaning learning, network, get involve with local RE investors organization and most important interactions with others on BP and read the newly mint published BRRRR book. Education is the key!

Alex