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Updated over 8 years ago on . Most recent reply

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Joe Ratliff
  • Investor
  • Wood Ridge, NJ
1
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BRRRR Strategy risk vs reward

Joe Ratliff
  • Investor
  • Wood Ridge, NJ
Posted
What is the risk of the BRRRRR strategy. It sounds good to be able to buy property, rehab it, rent it to a tenant, refinance, then take money out to repeat the process. I know that by doing this, you're building a passive income stream, but at the same time, you're also acquiring lots of debt. I just wanted to see if anyone out there can let me know the dangers of doing this strategy. Thanks!

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Kevin Siedlecki
  • Investor
  • Madison, CT
458
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710
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Kevin Siedlecki
  • Investor
  • Madison, CT
Replied

@Joe Ratliff - people have different tolerance for debt. Personally, I am not worried by taking on that debt, because as long as I've purchased well and keep things rented, my tenants are paying that debt. I shouldn't have to worry about it unless I'm not renting or not taking care of the property.

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