BRRRR "Refinance" Stategy

[Rickey Wiley]

Hello BP!

Quick question on the "BRRRR" strategy, specifically the 3rd "R" - Refinance. My question is what exactly are you refinancing and what is the benefit? Are you just trying to get a better interest rate on the original loan you took out? If someone can explain the philosophy of that and the BRRRR strategy I'll have a better understanding. Thanks guys.

[Jason Mak]

You aren't necessarily trying to get a better interest rate though that is a major motive.  You are just pulling cash out of the house and using that cash to reinvest (the final "R") in a new property.  That's the basic strategy and how you can keep on building value in your real estate portfolio over time.