BRRRR Homes as Investment Properties
Today we will be discussing BRRRR homes as investment properties. Ever heard of the BRRRR method? It’s one of the smartest ways to build wealth through real estate. BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It’s like flipping houses, but instead of selling, you keep the property as a rental.
Here’s how it works:
- Buy: Find an undervalued property that needs some TLC.
- Rehab: Fix it up to make it safe, functional, and attractive for renters.
- Rent: Get tenants to move in and start covering your costs.
- Refinance: Pull cash out of the property with a loan based on its new value.
- Repeat: Use that cash to do it all over again.
For example, let’s say you buy a fixer-upper for $100,000. You spend $30,000 on repairs, and now it’s worth $180,000. You refinance, take out $50,000, and use that to buy your next property.
The best part? You’re building equity and cash flow at the same time. With every BRRRR deal, your portfolio grows while your tenants help pay down the loans.
It’s not always easy, but if done right, it’s a powerful strategy to grow your investments.
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