Brrrr Method In Inner city areas.

[Derry Johnson]

Hello, BiggerPockets Community

Looking to gain more knowledge by asking experienced investors, "what do you guys think about the brrrr method in the rougher parts of the city?" I had many people that have not really owned real estate saying its a bad idea, I just want to hear what investors and lenders thinks about it. 

Thank you

Derry Johnson

[Jonathan R.]

I invest in the inner city but choose at the moment not to brrrr. Financing is really meant for experienced investors. Buying in cash or with no debt attached to the property is a way to take a more conservative approach toward investing in riskier assets. I may use some leverage at some point but want to build a strong foundation of cashflow the makes me financially free first before leveraging later. I’ll never put my foundation at risk. These types of properties are super cheap, work harder to make the cash needed. Don’t worry if it takes time to build up in the beginning, keep pushing and you’ll get there.