Unconventional BRRRR Strategy?

[Caleb Vance]

BP Team,

I am trying to buy my first investment property with the intent to use the BRRRR method, but I am seeing if its possible to use that method with out purchasing the property all cash. I was planning on putting 3.5% down, fixing the property up and, refinancing from there. I know one of the main ideas of the BRRRR method is to purchase all cash to be able to get a better price and buy the property under market value, as well as the equity side of it. But I am curious to see if its still possible to use the BRRRR method or if its better to use a "live and flip" technique.

I appreciate the help in advance. Thank you all.

Caleb Vance

[Michael Noto]

@Caleb Vance When you say you are putting "3.5% down" does that mean you are planning on using a FHA loan? If so, can you get a property that is FHA financiable for it to make sense numbers wise for a BRRRR deal?

Sure, you can execute it like you outlined, but you would need to purchase the property at a discount and the question is can you get the property at enough of a discount?

The BRRRR strategy is generally done with a property that is not financiable by conventional means due to its condition. If you can get one that is and the numbers work it is basically the best of both worlds.