Hi all - Just wondering if anyone has any experience deploying this strategy here in Columbus or Central Ohio? I find this strategy interesting and I wanted to get some other peoples' opinions on it. Pros? Cons?
As a side note, the term BRRRR seems to be relatively new but I'm reading a book from 2005 and the strategy discussed in it is exactly the same. Just found that a funny.
I am doing a long version of that at this point. I am seeking out owner finance opportunities and then plan to refi in 2-5 years. I will be working toward the brrr strategy in future deals.
I have been doing that here in C-Bus for the past few years. It works great except... Your debt to income eventually maxes out! :( I was able to buy 5 units that way while in school with a very low income though. Now I'm flipping to raise my income to buy more rentals via the BRRR strategy. If you have a high taxable income you will probably have quite a bit of success doing this.
Thanks for your thoughts on this. I'm always interesting in learning about how people decide to finance their properties.
@Tyler Walker Are you having success finding owner financing opportunities? Also, is there a reason you want to wait 2-5 years to refinance those type of deals?
@Grant Patmon Five deals while in college is impressive. Well done. Are you saying that you have a hard time refinancing those existing properties because to do so would cause you to bump up against your debt/income limits?
I have an owner with two properties now and another that I may have negotiated into it.
Two to 5 years is based on favorable terms from the seller. If I can get low enough (or no interest) from the seller, no need to refi for a few years. In the middle of that type transaction now. If interest rate or something else is bad with seller finance terms, then yes, earlier may be a better option.
I've been doing it for 2 years now and the problem is the last R. Banks really don't like lower end properties even if they cashflow decently. Near all my money has had to come from private sources which are a very different can of worms from loans.
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