How does BRRRR Strategy Works-Real Estate Investing
The BRRRR (Buy, Rent, Rehab, Refinance, Repeat) is a real estate investing strategy that involves buying distressed properties in a good location then flip the property to its standard condition and then rent it out, and the cash-out refinancing to fund further rental property investment.
The difference between conventional investment strategy and BRRRR strategy is you need hard money lenders instead of a conventional mortgage. Secondly, the BRRRR strategy focuses on investing in distressed properties and then refinancing the purchased property to occupy the second property. From my experience, you can buy more than 10 properties under 5 years with 100K which I will talk about later.
If you are a real estate investor and considering this type of strategy. Then you must read till the end of the post as I will be outlining how BRRRR strategy works and some of its pros and cons.
How does the BRRRR Strategy Works?
If done correctly, the BRRRR strategy can provide a passive income in massive amounts. It is one of the revolving methods to buy and hold rental properties in the long term.
This method works as follows:
1. Buy a Property:The property you purchase should be a distressed property but in an ideal location. Some work should be done to meet the specifications and prepare for the rental. Due to property conditions, it will likely be cheaper to purchase.