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Updated over 6 years ago on . Most recent reply
BRRRR method - can it be done indefinitely?
I recently learned about the BRRRR method as an alternative to just getting traditional, conventional mortgages on rental properties, since I heard that there's a limit of something like 4-10 mortgages you can have taken out in your name at a time. It sounds like a good strategy to me, as long as I'm patient enough to save up cash for that first property (assuming I'm not interested in private/hard money), and I'd have the advantage of being able to offer cash on purchases.
My question is: is there a limit to the number of properties you can have refinanced or have a heloc (or equity loan) against? I'm evaluating this as a way around being limited to 4 loans, so is this a process that would let me leverage as many properties as I want?
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Steve Vaughan
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Just don't forget the true acronym for BRRRR which is BRRSROPS R (if you care to again).
S is for seasoning. If you buy with cash and don't lend it to yourself from another entity - wait at least 6 months.
RO is for Rip Off fees. $5k. Thank you sir, may I have another.
PS is for Pain and Suffering that a refi is.
R is for Repeat (if you care to again). The truth!