The BRRRR strategy and The Most difficult parts of it

6 Replies

Good morning/afternoon/evening,

I am a newbie investor and I have been researching different methods on how to begin my real estate investing journey. I looked into the BRRRR method and it interested me greatly. In your honest opinion, what is the most difficult part of the BRRRR strategy and why? I believe my problem areas will be the Buy and Refinance portions of the strategy. Thank you all.

- Tyre C. (Owner of Azure Freedoms LLC)

Hello @Tyre Carmon and congratulations on starting your journey! 

From what I have learned from my mentor, BP community, and reading, I am anticipating the rehab and refinance to be the hardest part of my first deal. I am not too worried about the rehab as I do have experience overseeing this type of project. 

All that I have gathered however has made me aware that the refinancing part of the project will hardly ever go to plan, so always use conservative estimates when running the numbers on a deal. 

As for finding deals and evaluation, as @Jaysen Medhurst said, make that your life until you are doing deals in your head at all downtimes. I have done thousands of deal evaluations using all the BP calculators and other REI calculations, until I was comfortable taking my numbers and presenting them to investors with confidence.

Find a good agent and get access to an MLS so you can see what's out there on the market and recently sold comps, and realistic expectations of rehab projects in your market. I also use rentometer.com and niche.com to research target markets.

You have to know and be confident in your assessment of your market. You must the neighborhoods and trends. I invest in the Tampa area, in the Ybor City area, I know the average rent, that there are a lot of 3/1 SFRs there, the ratio of renters vs. buyers in an area...

When using the calculators, if a deal seems too good, it is. watch the videos on how to use them as well as hit um the forums that a relevant to your market, they always have great info on things you wouldn't think of. i.e. what utilities landlord usually pays in an area, insurance, vacancy rate.

County Accessor website are great for looking up properties and getting good information for running numbers. 

I hope some of that was helpful!!! Congratulations man I wish you the best!