I don't understand the difference between a rental and a BRRRR

[John-Patrick D. Bailey]

I'm watching an archived webinar (How a Newbie Can Start Building Wealth Through Real Estate) and Brandon is referring to rentals, separate from BRRRR. I always thought they were the same, can someone please enlighten me. I'd greatly appreciate it.

[Kenneth Garrett]

@John-Patrick D. Bailey

A BRRRR you are buying a property at a discount. Rehabbing it to force the equity. Put a tenant in there and refinance it out. The plan is to have no money in or a small amount.

The traditional rental is put 20% down maybe small fix up or none and rent it.  

You are correct they are both rentals, but a different strategy for each.

BRRRR buy for 100K rehab 20K, ARV 160,000 refi at 80% no money left it

Traditional rental Buy at 160,000, put down 20% (32K) rent it.  You have 32K stuck in.

Big difference between the two.