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BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated over 1 year ago,

User Stats

61
Posts
49
Votes
Michael A.
  • Financial Advisor
49
Votes |
61
Posts

Calling the BRRRR method experts to understand how it works

Michael A.
  • Financial Advisor
Posted

I'm trying to understand the different strategies using the BRRRR method and how it generally works. I'm hoping some investors can contribute to the discussion and help answer my questions. Thanks.

From what I understand, it involves getting money from a hard money lender to buy and fix up a property. 

For example, 

hard money loan of $100k

Purchase price $200k

20% Down = $40k

$60k in fixing it up. 

New appraised value of $400k. 

Rent it out.

1: from here would you cash out refinance or sell the property to pay back the loan? 

2: If you cash out refinance let's say 75% of $400k, what do you do with the left over money after paying back the hard money loan. Do you use the left over cash out money to buy another rental? Or do you do the BRRRR method again this time using your own money?

3: Is the BRRRR method best for 2-4 unit properties or single family?

4: How many months should the BRRRR method take?


5: Where do you find a good hard money lender? Bigger pockets? 



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