Buy
Rehab
Rent
Refi
Repeat
BRRRR (Buy-Rehab-Rent-Refinance-Repeat) is an acronym for a popular real estate investment strategy used by investors who wish to build passive income over time. It is a real estate investment method which consists of buying a fixer-upper rental property, rehabbing it to increase its after-repair value (ARV), renting it out to tenants to produce cash flow and passive income, refinancing it to recover the capital invested, and repeating the process in order to build a portfolio of properties. If you have ever wondered how successful investors turn one rental property into a robust portfolio, this is it!
What is the BRRRR Method?
- The BRRRR method is a method of buying rental property with little to no money left in the deal.
- It works by maximizing the efficiency of the capital in the deal and the order in which the investing stages are carried out.
- The general idea is to buy a fixer-upper property, rehab it, refinance it to recover the capital invested, and repeat.