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Updated over 3 years ago on . Most recent reply

User Stats

29
Posts
5
Votes
Sergio Moratto
  • Flipper/Rehabber
  • Miami Dade County, fl.
5
Votes |
29
Posts

The BRRRR System.$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Sergio Moratto
  • Flipper/Rehabber
  • Miami Dade County, fl.
Posted

When I use the BRRRR System in the refinance part of the property , that money is used to pay the initial loan of the purchase property . I now directly assume the debt whit the Bank or lender, this payment is made through of the monthly rent that i receive.

Question: In this case the cash flow  is ZERO?         Whats THE GOAL?     Whats the END GOAL???

THANK YOU. have a great day BiggerPockets Family

Moratto Homes LLc.

33015

Most Popular Reply

User Stats

3,673
Posts
3,452
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Steven Foster Wilson
  • Rental Property Investor
  • Columbus, OH
3,452
Votes |
3,673
Posts
Steven Foster Wilson
  • Rental Property Investor
  • Columbus, OH
Replied
Originally posted by @Sergio Moratto:

When I use the BRRRR System in the refinance part of the property , that money is used to pay the initial loan of the purchase property . I now directly assume the debt whit the Bank or lender, this payment is made through of the monthly rent that i receive.

Question: In this case the cash flow  is ZERO?         Whats THE GOAL?     Whats the END GOAL???

THANK YOU. have a great day BiggerPockets Family

Moratto Homes LLc.

33015

An ideal BRRRR is one where you can get a good chunk of change back at the refi, and your property still cash flows at at least a 1.2 DSCR. For example one BRRRR I did in Columbus gave me $175k back and cash flows $2,000/month.

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