Mostly as the title states, does the BRRRR strategy work if you don't have the finances to purchase an entire property outright? I understand the concept of buying a first property for cash, rehab it, rent it, refinance it, and then move on. However, this only works if you have the initial funds to buy the property and have refinance cash 100% correct?
The reason I ask is because I bought my first home in May of this year, and that for the most part depleted a large portion of my savings (for the down payment), and I'm slowly recouping that. I'd like to play with BRRRR, but don't have $70-80k to begin with the first property.
@Bryce Matheson - there are other ways to purchase such as hard money lenders, owner financing, private lenders or a Heloc on your home. The goal is to refi and get all or most of the money back and repeat the process. Hope this helps.
Maybe a flip would make sense for the first one. If you can locate a great deal, you can likely find a $$$ partner to split the profit with. If you do this a couple of times, you'll be well on your way to the cash you need to start the Brrrrrrr rolling.
That's a great idea. That might be a better option. After a couple flips, I might be able to have enough capital to move on from there.
Not sure if this helps at all, but I have good credit (730's) and a decent income (~$55k/yr) living in Idaho.
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