BARRRRR strategy clarification

[Jeffrey Eugen]

Hello. In coming months I am taking possession of a triplex with the intent to use the BRRRR strategy. 2 of the 3 units will undergo kitchen and bathroom renovations. Approx $20,000 will be spent.

Now I am hearing about this BARRRR strategy — which if I understand clearly — basically means that as long as I start to advertise and have potential tenants come to look at the units once we are to begin the reno, I will be able to write off all the reno work? 

This is truly amazing — I’m just hoping someone here has done this and can vouch. Even better, if there is an accountant on BP that can clarify this to being a legit strategy that won’t haunt me if the IRS come a knockin. 

Any assistance or knowledge here is appreciated. Thanks. 

Jeffrey