Investor · Cincinnati, OH · Member since 2019 · 89 posts · 23 votes
I like the BRRRR method and the potential income it provides. My question is can there be a lease to own opportunity mixed with BRRRR? I would like to have my own property that I can refinance and collect even bigger cash flows for. I was curious if the two can even be merged. I'm assuming since the property is not in your possession, you can't do this. However, when you own the property, can you lease to own and BRRRR at the same time? Thanks in advance friends.
@Eric Piccione If you’re talking about buying the property, refinancing into a mortgage and then leasing it out with an option to purchase, there’s nothing wrong with that. You’re essentially just renting out the property with an option fee to purchase after the first year or two. I feel like this defeats the purpose of buying to hold as a cash flowing rental since you’re taking the risk of the lease option purchaser actually deciding to close it, but 9 times of out of 10 they never do.
@Eric Piccione If you’re talking about buying the property, refinancing into a mortgage and then leasing it out with an option to purchase, there’s nothing wrong with that. You’re essentially just renting out the property with an option fee to purchase after the first year or two. I feel like this defeats the purpose of buying to hold as a cash flowing rental since you’re taking the risk of the lease option purchaser actually deciding to close it, but 9 times of out of 10 they never do.
The way I understand it, i'm getting money no matter what in a lease option. If they decide to buy in a few years time, it's a win-win. I was seeing if there was a way to get into lease option with no money down as Brandon mentions in the book.