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Updated almost 8 years ago on . Most recent reply

User Stats

44
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14
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David Flanders
  • Overland Park, KS
14
Votes |
44
Posts

Math Question Based on BRRR and Trade-Up Methods

David Flanders
  • Overland Park, KS
Posted

Good afternoon. in Brandon Turner's book (Rental Property Investing) he talks about the BRRR method and trade-up method. Regarding trade-up, he uses an example where you buy at 80% of retail (presumably, less repairs) and ensure there is a 10% appreciation in value based on repairs. Regarding BRRR, he uses an example where you buy at 70% of ARV less repairs. In regards to the math specifically, is there a difference between these two strategies? Thank you.

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