18/07/2024
BRRRR = Buy, Rehab, Rent, Refinance, Repeat.
B = BUY. Finding a property that requires some updates or renovations that will add value to the property. This will require some intensive deal analysis which includes the cost of renovations and estimating the rent you can get each month.
R = REHAB. You have find a property that requires some updates or renovations. This way you're adding value to the property. Repairs can include roof repairs, updates kitchen, updated bathroom, landscaping, etc.
R = RENT. Once you have added value to the property, you are ready to find tenants.
R = REFINANCE. After adding some equity in the house, you are ready to refinance it and pull money out. BRRRR strategy focuses on cash-out refinance. Cash-out refi means that you are able to tap your home equity to withdraw cash for any purpose.
R = Repeat. With the cash in hand, you are ready to repeat the process and buy another investment property.
