Using the BRRRR method with tenant-occupied properties

[Mike R.]

Hi all,

Can the BRRRR technique work with multi-family buildings that are already occupied by tenants? If so, what does that look like in practice? Or does this method only work with vacant properties? I find that most duplexes, triplexes and quads in my Class C area already have tenants in them. They're undoubtedly in need of work, but they're rented.

Thanks,

Mike

[Lance Wakefield]

BRRRR

Buy rehab rent refinance repeat

If there is already a tenant in the tenant you simply wait until the lease is over and move them to another unit or let them go on their way. 

Rehab doesn't have to happen day 1 if the property is cash flowing. 

The idea behind the strategy is to get into the property below market value. 

I hope this run down helps.