Let's Talk About The BRRRR Strategy

I think BRRRR is one of those strategies that sounds incredibly simple until you actually try to do one. 😂

Buy. Rehab. Rent. Refinance. Repeat.

Easy, right?

Well... maybe not.

The biggest mistake I see investors make is focusing so much on the rehab that they forget about the refinance.

I believe you should think about the entire deal BEFORE you buy it.

For example:

What will the property be worth after renovations?

What will the rent actually be?

What will the new loan look like?

How much money will still be tied up after refinancing?

And most importantly...

What happens if the appraisal comes in lower than expected?

That's where the BRRRR strategy can get interesting.

I think the goal isn't simply to “get all your money back.”

The goal is to create a property that performs well enough to support the next step.

And please don't forget the fifth R:

RECHECK YOUR NUMBERS. 😂

What has been the hardest part of BRRRR for you — finding the deal, rehab, renting, or refinancing?

#BRRRR #RealEstateInvesting #RentalProperty #RealEstateInvestor #BiggerPockets