BRRRR Pros and Cons

[Aliyyah Carter]

Hey everyone, my name is Aliyyah. I'm a licensed real estate agent who focuses solely on working with investors on their next flip or rental property in the Philadelphia area. I currently have a new investor who is ready to purchase their first rental property using the BRRRR strategy. She is worried about the process of refinancing once the property is rehabbed. I know to qualify for a refinance you need to have a decent credit score, stable income, and the property needs to appraise at a certain LTV. She is concerned, she isn't going to qualify since she is self-employed and her income varies.

What are some pros and cons of using the BRRRR strategy as a new investor? I want to share with her both sides so she can make the best decision that works for her.