BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated over 4 years ago,
How Fast Can You Scale the BRRRR Strategy?
Hey guys! My name is Ben Morand and I am a 20 year old college student interested in buy and hold investing. So over the past few months, I have researched various investing niches/strategies such as small multifamily properties, large multifamily apartments, MHP's, etc. and now I am exploring the world of single family home BRRRR investing.
So I like the strategy a lot due to its relatively low barrier to entry financially and it’s lasting sustainability. What I am wondering is just how powerful is this strategy in real life? I’ve read all about it in the various BP books and on the blogs and podcast and forums, etc., but it almost seems too good to be true.
I've seen people such as Ryan Dossey on social media who have scaled the BRRRR strategy to buying 150+ single family houses in just 2 years. While I don't plan on acquiring THIS many properties in 2 years (I am a full time college student so I don't have quite this amount of time or resources), I am wondering what the real life pros and cons are to the strategy. Is it really a virtually "free" cycle where investors can repeat over and over again, building a massive portfolio of homes? How long does the entire process generally take? Is it common for people to find lenders for the refi that don't require a seasoning period? How difficult is it to take on so many loans? How hard is it and how fast can someone potentially acquire 15-20 properties this way? Any information that people can provide on this subject would be greatly appreciated!
Thanks so much to everyone willing to help!