This worksheet will help you determine whether to purchase a rental property using the BRRRR method of Buy, Renovate, Rent, Refinance, and Repeat.
Although BRRR might sound like something you’d hear in the middle of winter, it’s actually one of the hottest ways to invest in real estate today. Popularized over the past decade, the BRRR method is actually a long-standing tried and tested method of real estate investing.
In short, the BRRR method of real estate investing means buy, rehab, rent, refinance, and repeat. That is, you buy a value-add or undervalued property, renovate and rehab it to market standards, get tenants in there, and refinance it based on your new market value to pull out your original (or more!) cash investment. You can then set up your remote property management system, and then you rinse and repeat.
BRRRR is a simple real estate investment strategy that any rental property investor can use to build a portfolio of cash-flowing properties, even if you’re just starting out.
Although BRRRR might sound too good to be true, the fact is that by using BRRRR you can grow your real estate portfolio with very little or no extra capital after you invest in your first property.
If you buy and renovate correctly, at the end of your BRRRR you should be in a position to refinance to get all or more of your original capital back to repeat the process over again. It’s how many real estate investors build up a larger portfolio of properties with not a lot of outside capital.
The key to the BRRR method of real estate investing hinges on two critical components: (1) finding the right property at the right price; and (2) not overspending on, or failing at, the renovations. This requires a strong contractor team, as well as a solid network to find you the right deals at the right price.
Download this BRRRR method worksheet for free today to help guide you through this acquisition process.