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Updated about 6 years ago on . Most recent reply

User Stats

13
Posts
4
Votes
Tamara Rodenbeck
  • Attorney
  • Phoenix, AZ
4
Votes |
13
Posts

Why or when would you NOT want to use the BRRR method?

Tamara Rodenbeck
  • Attorney
  • Phoenix, AZ
Posted

Seems like an unbeatable strategy so long as you have enough for an initial principal. Why or when would you not want to use it? Still a newbie learning here! 

Most Popular Reply

User Stats

39
Posts
26
Votes
David Moudy
  • Property Manager
  • Indianapolis, IN
26
Votes |
39
Posts
David Moudy
  • Property Manager
  • Indianapolis, IN
Replied

It is a great strategy - you have to know your numbers though and be confident in them. If you are off on your construction costs, or your appraisal comes in low, rent at expected rate doesn't happen it can sink your ship.

If executed correctly there are no better methods in my opinion. 

However it is also a method to lose money very quickly as well. If you miss on your calculations you can be at a negative return for quite a while.

 Do your due diligence, calculate your costs, and then recalculate them. 

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