BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated about 2 years ago,
The planets have aligned in you Favor BRRRR Investor!
The planets have aligned in your favor, "BRRRR" Investor!
It is probably The best time for BRRR - The return of the 1% Plus!
Why is this the best time? You have the opportunity to get the value you are looking for within six months of owning the property to be able to cash out. What I mean is that you have scare sellers plus values that are staying up in some regions of the country, like Tampa, Florida. This means that you can have the cake and eat it too. You can potentially find the discounted deal you have been looking for for a long time, 25-30% off, and at the same time be able to convince your appraiser that the high value is still there to do the refinance and cash out. I have seen it done at least 12 times in the past few months.
Now it gets better for the first time in a while; you will be able to refinance and not have any issues with your DSCR ( Debt-Service Coverage Ratio) since rents continue to push up, sometimes as much as 25% plus a year, compared to 12 months ago.
All the planets have finally aligned! This window of The planet (30% off), Planet (Higher DSCR), Planet (High values) Planet (bullish lenders) alignment will only last 6 -12 month max!
Who cares if the values go down later when the rents are predicted to continue pushing up yearly in double digits for at least two more years after a market correction? Invest away!
- Jorge Vazquez