I am looking into purchasing a fixer in Sioux Falls Sd but am confused on how the third “R” in the BRRRR: Refinance.

Today I was speaking with a friend about maximizing cash flow on my rental properties and he came up with a BRRR method minus the last R and I thought it seemed like a good idea.I currently have 2 rental properties and both are paid for.One is a small house that I have about 15k into and it cashflows about 500 per month.The other is a quadplex that I have about 70k into and it cash flows between 800 and 1500 per month (one room is an airbnb).

Found a property in beach area that is definitely overpriced (almost everything is) but with calculations of 70% occupancy high season and 50% low season , and other methods such as enemy method @lukecarl , the property STILL cash flows.

Any reasonable methods would be accpetable.

I have two areas I would like to go( wholesaling or house hacking with the BRRRR method) however I am someone that learns faster by seeing and talking about the minutia of process.

@Juhi Banerjee, appraisers for 2-4 units will use the same valuation methods as a single family home: Sales comparison, Income and Cost approach, with a reconciliation section to account for the variances.  

@Henry Lazerow Not only is it state law (most states) to have a written representation agreement, most professionals use contracts to ensure payment and detail services rendered, instead just going with the hope and prayer method. 

Some questions that I thought about asking are:1. what comes to mind when you see a FSBO sign on home that doesnt appear to be a mess2. what methods would you use to contact homeowner, and what do you say3.

If I was audited, I can prove I claimed all my income on my taxes.The only payment method that cannot be traced is cash, provided you receive it as cash and spend it as cash.

Brrr method suggests that investors should invest in properties that are located in good school districts since it would later help for resell value.