BRRRR + Seller Finance

[Pete Storseth]

Has anyone ever done this, or considered it?

Buy a property with some equity in it.

Rehab it modestly, add more durable features, maybe a nice upgrade like a garage/second living room conversion, patio, or jetted tub.

Rent it out at appreciated rental rate.

Refinance, cash out at Appraisal that should have it over the original ARV.

(Set that cash aside for now)

Then, before repeat, off owner finance to the tenant at a new monthly payment right around their rents, collect 10% down payment on sale price slightly above the new appraised value.

(Take that down payment, and the cash left from the refi, and...)

Repeat.

But now, no overhead on a rental property,

investing sale into new property, avoiding capital gains tax,

and still cash flowing better than before, because no capex, repairs, vacancy, etc.

Sure every star has to align, but what a win! Is this too complicated of a strategy to make a niche?

[Heather Frusco]

@Pete Storseth it's just a different version of BRRR but yeah why not, just be sure not to overleverage yourself.