BRRRR Method Overview
The BRRRR method is a real estate investing strategy that involves buying properties below market value, rehabilitating them, renting them out, refinancing to pull cash out, and repeating the process.
BRRRR stands for:
- Buy: Purchase undervalued property that needs repairs
- Rehab: Renovate and upgrade the property
- Rent: Find tenants and collect rental income
- Refinance: Take out a new loan to pull out equity
- Repeat: Use cash from refinance to buy another property
Getting Started with BRRRR
To start implementing the BRRRR method, search for discounted properties needing repairs. Buy with cash or financing, fix up the property to boost its value, find tenants at good rental rates, and a few years in, refinance to a better loan and take cash out to repeat the process by buying more properties.
Building Wealth with BRRRR
The more you repeat the BRRRR cycle, the more established you become in real estate investing. Over time, risk decreases and equity increases with each new property. In the end, BRRRR produces passive income from a growing real estate portfolio, and the snowball effect builds wealth for those willing to put in the work upfront.