Skip to content
General Real Estate Investing

User Stats

2
Posts
0
Votes
Charles Greene
  • Investor
  • Massachusetts
0
Votes |
2
Posts

Using BRRRR to expand my portfolio

Charles Greene
  • Investor
  • Massachusetts
Posted Nov 21 2022, 11:45

Hello All,

I am trying to find ways of building a portfolio of multifamily houses in Western Ma. Running through the numbers, I realized I could use my savings and purchase 4 or 5 properties at 25% down, at which point I would be out of cash. Using BRRRR seems like a way to utilize the same investment dollars over and over, allowing me to expand the business without the financial constraints of plopping down $70-80K at a pop for down payments and closing costs until I run out of cash.

Am I missing something here?    Any and all comments/suggestions are welcome.


Thanks,


Chuck  
 

User Stats

3,220
Posts
3,204
Votes
Robin Simon#1 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Austin, TX
3,204
Votes |
3,220
Posts
Robin Simon#1 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Austin, TX
Replied Nov 21 2022, 11:52

I don't think you are missing anything - thats definitely the main benefit of BRRRR - being able to use that same capital over and over again, the key is being able to manage and successfully execute on the rehab side of the equation, which is obviously more challenging than just purchasing turnkey properties

User Stats

3,748
Posts
3,094
Votes
Kenneth Garrett
Pro Member
  • Investor
  • Florida Panhandle/Illinois
3,094
Votes |
3,748
Posts
Kenneth Garrett
Pro Member
  • Investor
  • Florida Panhandle/Illinois
Replied Nov 21 2022, 12:20
Quote from @Charles Greene:

Hello All,

I am trying to find ways of building a portfolio of multifamily houses in Western Ma. Running through the numbers, I realized I could use my savings and purchase 4 or 5 properties at 25% down, at which point I would be out of cash. Using BRRRR seems like a way to utilize the same investment dollars over and over, allowing me to expand the business without the financial constraints of plopping down $70-80K at a pop for down payments and closing costs until I run out of cash.

Am I missing something here?    Any and all comments/suggestions are welcome.


Thanks,


Chuck  
 


 It’s all about forcing appreciation through the rehab process.  Whether it be single family or multifamily the concept is the same.  The hard part is finding good investments that have the ability to force appreciation and navigating interest rates. 

IRA Club  logo
IRA Club
|
Sponsored
An IRA Administrator Flat fees. No percentages. Grow your retirement fund: Invest in real estate with a self-directed IRA

User Stats

882
Posts
628
Votes
Jonathan Taylor
Pro Member
  • Lender
  • Los Angeles, CA
628
Votes |
882
Posts
Jonathan Taylor
Pro Member
  • Lender
  • Los Angeles, CA
Replied Nov 21 2022, 15:37

@Charles Greene that strategy has worked for many investors and still can today but with the increase in OOS investors, the limited supply, and the tightening lending market, run your numbers conservatively. Expect to leave cash in the deal, run your cash outs at 70% LTV as most of my clients are not debt covering at 75 LTV on the cash out.

Investor Property Loan Logo