Cash or mortgage to do a BRRRR

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Hey guys! I'm new here. I've been studying up on the BRRRR method and was wondering : do you have to buy the property outright cash up front or can you mortgage it? I guess I need a little guidance on the process.

Depends on what type of property it is. Most times if it is an actual BRRRR, then you are buying a property that needs some rehab to build equity into the property before refinancing. In that case you can get a mortgage with a HML to acquire and fix it. Once rehab is done you can then refinance out.

One of the major benefits to BRRRR is that it allows you to separate the purchase and the loan transactions. Also, as said above, the houses you're buying for BRRRR are usually in awful shape and won't qualify for a regular loan.


cash or equivalent up front is the most efficient way.