The Specific Steps Involved in the BRRRR Strategy

You need a strategy — especially if you’re just starting out as an investor. The BRRRR Method is just that: a specific, tested, and sustainable investment strategy that can get you from point A to point B and beyond.

How Does the BRRRR Strategy Work?

BRRRR stands for “Buy, Repair, Rent, Refinance, and Repeat.” This real estate investing method describes a strategy and framework used by investors who have the desire to build passive income streams over time through collecting rents from tenants and building equity in properties.

1. Buy

Looking for undervalued properties becomes an essential step for any wise investment, but it remains especially important when it comes to the BRRRR method. 

2. Renovate

As for what repairs you should undertake, there are a lot of great guides to what home repairs have the best return on investment.

3. Rent

For the BRRRR method, a property in a great, active rental market comes as a preferable choice to one that may be slightly more undervalued but carries less attractiveness to renters. 

4. Refinance

Here’s where the BRRRR method really shows its value. Once your property has been renovated and rented, you can proceed with a cash-out refinance, which basically converts the home’s equity into cash. 

5. Repeat

With careful planning, you could use the BRRRR method to build a sizable portfolio of rental properties; the sky’s the limit.

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