BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated over 1 year ago,
Calling the BRRRR method experts to understand how it works
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?