Brrrr vs Traditional Rental Properties

[Nathan Goff]

Hello all,

I wanted to hear some opinions on Brrrring vs. Traditional rental property investing - specifically the financing/refinancing aspect.

To do my first brrrr, I would have to have 100% cash for the purchase, rehab and closing costs.

I would then refinance for 75% of the ARV

Hopefully, that 75% would be enough for the next purchase and rehab and so on.

My question is: is it worth it to wait and save enough cash to fully cover the cost of the brrr project, or should I split that into many different down payments and have more properties?

I'm sure everyone's situation is different, just wanted to hear some opinions.

[Mary K.]

@Nathan Goff When they talk about "cash" in a brr situation it's not always cash like in a savings account.

Some other options are:

Hard Money- Google Hard Money Lender

Private money- your parents, friends, people you know

Line of credit- If the purchase price is cheap enough, sometimes you can get a LOC from a local bank

Construction Mortgage or 203k FHA Construction Mortgage- this can be done through most banks, just start talking to local banks and let them know what you are trying to do.

Cash- from a savings account

Hope that provides some value :)