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Updated over 6 years ago on . Most recent reply

User Stats

137
Posts
69
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Sam T.
  • Real Estate Agent
  • Atlanta
69
Votes |
137
Posts

BRRRR method - can it be done indefinitely?

Sam T.
  • Real Estate Agent
  • Atlanta
Posted
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?

Most Popular Reply

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10,252
Posts
16,111
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Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
16,111
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10,252
Posts
Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
Replied

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!

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