BRRRR stratagy OR Make down payments for multiply properties ?

[Isiah Ferguson]

Hey. I am a fairly new investor. I purchased a duplex for cash being inexperienced. Now I am looking to refinance the property to expand my portfolio. My question is Should I refinance and use the cash for the BRRRR strategy and be patient until I find a property or should I buy multiply turn key properties and spread the cash out by just putting the down payments and the start mortgage ???

[Lee S.]

spending the time to do 1 BRRRR is significantly more profitable than having 10 turnkeys IMO. With a BRRRR you end up with a rental with equity freshly rehabbed by you with very little to none of your money tied up in the deal. Your return on cash can be extremely high to infinite. On the other side, you can put your 25% down for a turnkey and wait 5-10 years just to get your down payment back and be stuck in a house that you can only sell for a loss until you either pay down your mortgage over years or get enough appreciation to cover selling costs.

Now that I've done 2 BRRRR's I would never consider a turnkey or buying anything at retail.