The BRRRR Method DOES WORK! Here's over 2.1 million reasons why

[Shiloh Lundahl]

Alright. I am tired of people complaining about the BRRRR method. I just read a 3-page thread where the majority of posters were complaining about the BRRRR method not working or being too risky. So let me share with you what we did last year to show you that the BRRRR method does work, and how well it works. I am in no way trying to brag or show anyone up. This information is solely to show you that the BRRRR method really does work. I welcome any and all questions for clarification.

In 2020 we purchased 110 units/properties

18 single family homes (in Arizona and North Carolina)

1 6-plex

1 12-plex

and 5 small mobile home parks (74 units)

Total cost to purchase the properties 3.76 million (most of which was a mix of hard money at 12%, private money, seller carry, and a little of our own money).

Closing costs on both sides of the refinances were roughly 150k.

Total spent on rehab was 535k.

Money costs on single family properties was roughly 80k (I'm excluding the multi family and the parks because they rents of the tenants paid the tenants on the multi family covered the costs of the hard money and private money). 

Project manager and assistant to help manage the projects and properties 60k.

Option fees on 10 of the single family homes that we are lease optioning 40k

Appraised values after for the refinances 6.69 million.

Total costs $4,545,000 (3.76 million + 150k + 535k + 80k + 60k - 40k)

Total appraised value of properties purchased last year $6,690,000.

Total value that was created $2,145,000.

Total of our own money that was used was probably a couple hundred thousand dollars. 

After the refinances, and after putting a couple of seconds on a few of the properties, we have none of our own money left into the deals.

Again, I share this with you to show you that the BRRRR method can work if you know how to work it.