The BRRR strategy is a great way to buy investment real estate properties. It stands for “Buy, Rehab, Rent, Refinance, and Repeat.” The goal is to buy a property, fix it up (rehab), rent it out, refinance the loan to get your money back out ( cash out refinance), and then repeat the process.
There are a few things to keep in mind when using the BRRR strategy. First, you need to make sure that you are buying a property that will appreciate in value. Second, you need to make sure that you are getting a good deal on the purchase price. Third, you need to make sure that you have the ability to do the rehab work yourself or have a good contractor that you can trust. Fourth, you need to make sure that you are getting a good interest rate on your refinanced loan.
The BRRR strategy can be a great way to buy investment real estate properties. Just make sure that you do your homework and understand the process before you jump in.
How to find the right property for the BRRR strategy
When using the BRRR strategy, it is important to find the right property. You want to find a property that will appreciate in value. You also want to make sure that you are getting a good deal on the purchase price. Make sure to do your homework and understand the market before making an offer on a property.
How to rehab a property for maximum value
Once you have found the right property, it is time to start the rehab process. This is where you will fix up the property and get it ready for rent. It is important to do a good job on the rehab so that you can maximize the value of the property. You also want to make sure that you are not overspending on the rehab. Stick to your budget and don’t over improve the property.
How to refinance for cash out and repeat
After the property is rehabbed and ready for rent, it is time to refinance the loan. You will want to get a cash out refinance so that you can get your money back out of the property. Make sure to shop around for the best interest rate. You also want to make sure that you are not paying too much in closing costs.
The benefits of using the BRRR strategy
The BRRR strategy is a great way to buy investment real estate properties. It can help you get a good deal on a property, rehab it for maximum value, and then refinance for cash out. This can help you build your portfolio and make money in the long run.
If you are looking for a great way to buy investment real estate properties, the BRRR strategy may be for you. This strategy can help you get a good deal on a property, fix it up for maximum value, and then refinance for cash out. This can help you build your portfolio and make money in the long run. Just make sure that you do your homework and understand the process before getting started.
Erika Finn, founder of Stacking Acorns, is an attorney who graduated from law school at University of California, Berkeley. She was a member and editor of the California Law Review and won the Prosser Prize for Legal Accounting. She holds a Master’s Degree from the University of Southern California (USC) and a Bachelor’s degree from Indiana University- Bloomington. Stacking Acorns is a personal finance website for women by women. We help mid-life women achieve financial freedom through real estate investing and other streams of passive income.
