BRRRR Method Clarifying Questions

[Toby Liebergesell]

Hi all,

For some background, I am looking to become a first time BRRRR investor soon but was hoping someone could help me when it comes to figuring out what the proper steps are when working with sellers, lenders, contractors, appraisers and so on. Obviously the method is Buy, Rehab, Rent, Refinance, Repeat but I was hoping to find out the steps others take in between that to make sure that I have a successful BRRRR.

Please let me know if my thought process is correct here and if not I would love to be corrected to make sure I am doing it right.

Assuming I find a house that I have analyzed and want to purchase, my first step would be figure out the ARV with my agent and others by looking at comps. I would also get the house appraised to figure out what the best price point for me would be.

Step 2: Get pre approved by a lender and tell them about my goals for the BRRRR method.

Step 3: If I am approved by my lender, I would make the offer and if accepted I will send out my contractor and home inspector to take a look the house and determine what types of rehab we should do? 

Step 4: If that all checks out, during renovating I will have the property management company start looking for potential tenants so that after the renovation I will have the house rented out and start having cashflow.

Step 5: After renovations are complete I would get the house reappraised and go back to the lender to let them know that I am wanting to refinance.

Please let me know if I have the right type of framework above and that I am doing the right steps to become successful in my first BRRRR.

Thank you so much for your help!

Toby