Updated almost 7 years ago on . Most recent reply
Is BRRRR not so good during down times - let me know.
The BRRRR method is a great strategy, but I have a concern. Does the BRRRR method maintain itself during recessionary periods with high unemployment. When you refinance and move the funds into the next property, it appears to me that you are building a house of cards. If too many tenants cannot pay rent due to market conditions (ie. 2008-2010 high unemployment), how do you pay the series of mortgages.
I have not heard anyone talk about retaining 6-months of mortgage payments in liquid assets. Otherwise aren't you at risk of a potential cascade affect of mortgage foreclosures if several tenants cannot pay their rent.
What is the recommended BRRRR strategy to full-proof your investments, regardless of the economy?