Buy, Repair, Rent, Refinance, Repeat. (BRRRR)

[Richard Oswald]

Hi BP! You guys are so informative so I wanted to ask a quick question.

Im getting ready to sign a contract for my first rental property.

The property is more so a Turn key property not much work has to be done.

My question is can the BRRRR process still be successful and how, if the property doesn't need to be repaired?

[Christopher Giannino]

@Richard Oswald

If I'm understanding your original post correctly, the only way I can think of for a BRRRR to work is if you bought the property for a an extreme discount meaning you bought the property for a lot less than what the property is truly worth allowing for initial equity. Another scenario could be if the property you buy is in an area that appreciates and so you can capitalize on that but remember appreciation is something that's not a given.

Most of the time, the BRRRR process works really well when you have a property that needs work because you can "force" the appreciation by doing the work... replacing a kitchen, adding a bedroom/bathroom, etc. In your situation, you can't force the appreciation because you say you're buying a turnkey property where all the work has already been done therefore you need some other way to build the equity in order to refinance.