Why BRRRR is not working for me?

[Andrew Teng]

Hi guys,

Please let me know on why I am unable to utilize BRRRR strategy in my situation.

I bought "property A" back in 2013, lived there for 2 years, and last year I bought "property B" and currently living in B. I rented out property A, and hoping to build up my financial profolio using BRRRR. Thus, I started reaching out to banks/lenders for refi on A. They all claimed that my loan ratio is too high, and I need to pay off my loan on property A before I can purchase another properties.

To my understanding, BRRRR is Buy, Rehab, Rent, Refi, Repeat. I've done Buy, Rehab, Rent (in a bigger time span), but why can't I refi?

[Lisa Misuraca]

The concept behind brrrr is to buy with cash or buy really really well so when you go to refi your value is much higher than when you bought.Another example is your buying distressed properties which you rehab to increase the value this is how you get your money back out after you've added value.