Using BRRRR to expand my portfolio

[Charles Greene]

Hello All,

I am trying to find ways of building a portfolio of multifamily houses in Western Ma. Running through the numbers, I realized I could use my savings and purchase 4 or 5 properties at 25% down, at which point I would be out of cash. Using BRRRR seems like a way to utilize the same investment dollars over and over, allowing me to expand the business without the financial constraints of plopping down $70-80K at a pop for down payments and closing costs until I run out of cash.

Am I missing something here?    Any and all comments/suggestions are welcome.

Thanks,

Chuck  
 

[Robin Simon]

I don't think you are missing anything - thats definitely the main benefit of BRRRR - being able to use that same capital over and over again, the key is being able to manage and successfully execute on the rehab side of the equation, which is obviously more challenging than just purchasing turnkey properties