Can I BRRR and then sell it a shortly afterwards - pros/cons?

[Doneshia Marinnie]

I'm an aspiring investor and during one of my meet-ups, another newer investor mentioned the idea of BRRR'ing just to get they're money out but then selling it right after they refinance. I know it depends on the goals of the investor but I thought the whole benefit behind BRRR was achieved with holding the rental property long-term. Is this an incorrect assumption?

[Cassi Justiz]

My guess is either they don't understand the BRRR method or they were talking about selling it on terms other than a "normal" sell. There is a cost to BRRR. Lenders generally have fees associated with loans. I can't see a benefit of refinancing and then selling the property to pay off the new loan you just acquired.

What I'm thinking is they may be doing weird lease options/owner finance stuff to pull out the initial funds and then use someone else's payments to cover the new loan.