What do you do if you can no longer BRRR?

[Darius Wade]

I bought my first property in February of this year with the intent to utilize the BRRR strategy. I acquired the home as a primary residence while house hacking for the year at a 6.25% interest rate. With the increased interest rates it wouldn't make sense to refinance and pull cash out. So in my situation do I simply wait until rates lower or are there other options for acquiring my second property aside from just saving up more money?

[Leo R.]

@Darius Wade why not wait until you've owned the current house 12 months (at which point you'll be eligible for another mortgage on a new primary residence), and then buy a 2nd property and house hack again?...rinse and repeat--do that once every 12 months, and you can build up a solid portfolio. At each property, occupy the least valuable space in the house, and rent out the most valuable spots so that you maximize your income to qualify for the next mortgage. If you don't qualify for enough to buy a turn-key property, look for a fixer and put in some sweat equity.

You've already gained some house hacking experience from the first property--why not tap into that experience and house hack again? (and again, and again, and again until you can't stand living with housemates any more--at which point, you should have enough equity and cashflow that you can get your own place).

House hacking is one of the BEST strategies around, and I've written numerous posts on the forums describing the specific benefits of house hacking (take a look at those posts for more info).

Good luck out there!