It’s a strategy that allows investors to acquire rental properties with little to no money out of pocket while building equity along the way.If you're considering using the BRRRR method to grow your real estate portfolio, here's everything you need to know about how it works, its benefits, and potential risks.What is the BRRRR Strategy?

No sense in paying 9% interest by using equity unless you have to do so.  

If you can make a conventional loan work, it’s likely a better option.

The lender is pushing you to do this to get an FHA loan.

You borrowed $388k and you’ve paid your loan down to $384k with your $30k in payments.

House hacking a duplex, even with negative cash flow upfront, is a great way to build equity while learning hands-on.

One potential route is using a FHA 203k loan for the purchase and rehab if you're okay with living in one of the units for a period of time.

The main problem is that most customers just look at the bottom line and mortgage loan officers know that. 

You're gaining equity.

Since 75% of the proposed income more than offsets the PITI of the loan, it's a wash.