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Updated over 4 years ago on . Most recent reply

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Brian Hood
  • Nashville, TN
24
Votes |
10
Posts

The "Infinite Return" BRRRR is BS

Brian Hood
  • Nashville, TN
Posted

I love the BRRRR approach, but why isn't anyone factoring in their time into their ROI? Even if you have $0 in the deal, you may still have dozens of hours (or more) invested into finding the deal, buying the property, managing the rehab, finding the tenant (or vetting a property manager), and getting the REFI.

Has anyone here actually included their time as a line item when it comes to the BRRRR deals? Especially those who make a high $$$ per hour with their business. I'd be curious how the numbers look for some people once that is included.

Most Popular Reply

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2,093
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2,359
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Lee Ripma
  • Rental Property Investor
  • Prairie Village, KS
2,359
Votes |
2,093
Posts
Lee Ripma
  • Rental Property Investor
  • Prairie Village, KS
Replied

@Brian Hood

I started out doing BRRRR and don't do it anymore due to the efforts required. When I was just starting I did a ton of work to learn. Now I look at "effort adjusted returns" and don't want to get high returns if it's a lot of effort. I would rather have less effort and lower returns. I'd rather be passive or take on a partner even though that reduces my returns (but frees up my time). There is no free lunch, if you want to recycle the same chunk of capital quickly it takes a bit of your time to do so.

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