BRRRR Strategy with high interest rates

[Robin Morales]

Happy New Year BP,

Was hoping to get your take on the BRRRR strategy. Here in California homes are still very expensive and so is lending. Does this impact the success of a BRRRR? Or is it insignificant so long as you get a great deal ?

[Corby Goade]

Interest rates are temporary, BRRRR is forever!

Sure- interest rates will impact the deal in the short term- and deals are relative, there's no difference in how easy it is to BRRRR in California Vs Ohio.

Buy in growing markets with healthy rent growth and growing populations. That will minimize your liability over time and you can refi when rates get to a point that you are more comfortable with. 

Bottom line- there is never a bad time or place to BRRRR, just know your market and numbers. If you can end up with 20% or more equity after six months and rents are around break even the first year, you've probably got a pretty good deal on your hands.

Best of luck!