BRRRR strategy with cash

[Jared Hockensmith]

Hello everyone! I’m 21 and looking to get into real estate investing. I’m currently in the education phase and learning as much as I can and starting to network with people and friends of similar real estate investment interests.

I'm really interested in the BRRRR strategy to build up a solid SFH rental portfolio, but I would love some feedback on my potential strategy and if it would even work.

Instead of using leverage, I want to save up cash to buy first BRRRR property. (I know it will take a couple years but that's ok with me) After going through the steps, I want to take out a home equity loan instead of doing the cash-out refinance. Now to save up cash for the next house, I plan to flip houses. Using this cash plus the home equity loan, I can then buy property #2 and then repeat. This way, the only mortgage I have is from the home equity loan, which will do two things: 1. More cash flow because mortgage is smaller, and 2. Quicker pay down because mortgage is smaller.

Is this way of doing the BRRRR even possible in theory? I know it will take longer but I feel like it will pay off in the long run. Thanks so much for your feedback!

Jared Hockensmith, Aspiring Investor from Tampa, FL