All Forum Posts by: Mike Brown

Say you have enough money to buy 4 rental properties to BRRR in a single year. How do you get them all rehabbed in that single year? Do you hire a single contractor who works on all of them at the same time, or do you have to hire multiple different contractors to work on each property?

Also, how long do rehabs normally take? 

I'm a bit confused about the refinancing part of the method. How does the process work? Say I start off with $35k capital for down payment and rehab costs. A home's value goes from $80k to an ARV of $140k. 75% of that would allow me to receive a $105k loan. Then I use the $105k to pay off the rest of the original loan + get back the $35k I had spent towards down payment/rehab costs, leaving me with $70k to repeat the process for another home (possibly 2 homes with that amount).

But how is that $105k supposed to be paid back, and wouldn't the monthly payment of that loan be higher than the original loan? I assume rehabbing the home would increase the monthly rent, and therefore cash flow, so perhaps that would make up for the higher monthly payment? Also, why do banks give 75% of the ARV loan even if the home isn't fully paid off?

Hi everyone

I'm in the MI/OH area and I want to get started in real estate investing. I'm not sure where to start and what expectations to have yet, but I want to learn everything I can. My goal is to eventually own 30 rentals putting out a steady stream of passive cash flow for as long as possible. I want to keep taking equity out of my rentals to grow them more and more as time goes on. Would you say that this is realistic?

Hi everyone

I'm in Michigan and I'm very new to real estate investing. I currently have $30k I'd like to invest using the BRRR method. I've recently read about BRRR. From what I read, it seems that the BRRR method basically works by saving a 25% down payment, then buy a home that needs to be updated, spend enough on updates that it will increase the value of the home, then refinance the extra profit to repeat.

But how exactly do I get started and find a home? I've been looking on Realtor at homes with good schools at around $80k. I can put 25% down and spend the other $10k on rehab. But I'm not sure if that $10k in rehab would increase the home value from $80k to say $130k (would it?)

Can someone lay down the steps I should take as a newbie and what expectations I should have? Thank you!