Max refinances using BRRRR method

[Luther A.]

I want to buy 100 properties using the BRRRR method. My plan is to buy my first property with straight cash. Renovate the property then rent it out then refinance to get out my initial capital then do it again. I want to do this 100 times. Is there a max number of times I can do this?

[Geordy Rostad]

If you go and buy a house for 20% down, fix it, then rent it, how many times can you do that before you run out of money?

On the other hand, if you buy a property cheap enough that you can fix it up, rent it, pull out $1-$25,000+, how many times can you do that before you run out of money?

There is theoretically no limit but here's the thing, it takes money to make money. To get started with a BRRRR, you will need to find the deals and you will need to finance them while you're doing the fix up. Maybe you have the cash? Great! More likely though, you'll need to borrow it via hard or private money. So you might be paying 10-12% interest while you are fixing up the property to rent. Not only that, you'll need 10-25% down to obtain one of those loans. Also, you will probably need to hold the property for 6 months or so before you can refi for value as opposed to what you paid for the property. Add in all these cost to make sure it's a functional BRRRR.

Those rules aren't set in stone but those are some of the obstacles you will encounter.