Updated about 5 years ago on . Most recent reply
Reserves Required for BRRR Strategy
I've been researching the BRRR Strategy for about year now, in the meantime, I'm in the process of flipping a single family.
In all my research, a video I watched today was the first to mention that you will be required to have 6 months of mortgage payments as reserves in your bank account. The money has to be seasoned, in other words, recent large deposits are not allowed.
Where I live, a typical 3 family could easily mortgage at $2500. So that’s $15,000 sitting in the bank.
Can anyone confirm if this is the case? As a first time BRRR'er not knowing this before hand could be a huge obstacle and I've never heard of it before. If this is the case, then I think it should be more transparent.