What is the ultimate goal with BRRRR?
Wanted to see what is everyone’s ultimate cashflow goal with this strategy.
Is it, at the end of this chain of transactions to own a few property free and clear and have less tenants and less turn over to deal with?
Is it to build equity and then own it free and clear?
Or is it to own as many properties as possible, all conservatively leveraged out and have tons of tenants/turn over and tons of bills to pay every month?
I am up to 8 units and I find it a little bit too much and feel like I am a property manager at this point. I feel like I have more freedom and peace of mind when I have one less bill to pay (which is usually the biggest one = mortgage).
Let's say some people have a goal to own 100 units using BRRRR. 50% goes to pay debt service (on conservative leverage), insurance and taxes, 10% goes to pay property management company, 10%-20% for repair and/or reserves, at least 1 month vacancy (10%), 8% - leasing commission. At the end, you left with 10% in your pocket.
Or you can own 20 units free and clear and put 50% in your pocket (due to no debt service). I think the bottom line number will probably be the same as 100 units and you have less unit/headaches to deal with.
Curious to know what's someone else take on it.
