BRRRR: How to Buy Rental Properties Quickly and Easily

Today we are going to discuss the BRRRR method and how it can help you buy rental properties quickly and easily. If you’re new to real estate investing, BRRRR stands for Buy, Rehab, Rent, Refinance, and Repeat. It’s a popular strategy used by many investors to build a rental property portfolio with minimal upfront costs. So, let’s break it down step-by-step.

Setting Your Goals

Every journey begins with a destination in mind. Therefore, before diving into the BRRRR method, ask yourself:

Why do I want to invest in real estate?
Where do I want to invest?
How many properties do I want to own?
How much cash flow do I want to generate?

Take a moment to think about your answers. After all, these goals will guide your entire investment journey.

Searching for Properties

Now, let’s start our search. Look for under-market properties, which are often found through:

Wholesalers
Investor-friendly Realtors
Real estate professionals who specialize in off-market deals

These properties are not listed on the MLS and usually require quick action.

Getting Long-term Loan Approval

Before buying, secure a pre-approval from a long-term lender. This step ensures you know the maximum loan amount you qualify for, which is crucial for the refinancing stage later on.

Buying with a Short-term Loan

Next, use a short term loan, like a hard money loan, to purchase the property. These loans are essential for fast closings, often within days or weeks.

Rehabbing the Property

Once you own the property, it’s time to rehab it. Focus on making necessary repairs to meet the After Repair Value (ARV). Remember, this is a rental property, so avoid high-end finishes. Instead, just make it appealing and functional.

Renting the Property

After the rehab, find a reliable tenant. Therefore, renting the property begins your journey to generating monthly cash flow.

Refinancing

Finally, refinance your short-term loan into a long-term mortgage. This step reduces your monthly payments and locks in a lower interest rate. Having pre-approval helps speed up this process, saving you money.

Repeating the Process

Congratulations! You’ve reached the wealth-building stage. Now, repeat the BRRRR method to continue growing your rental portfolio. Each cycle brings you closer to your financial goals.

Need help getting things set up correctly? Contact us today!

By following the BRRRR method, you can build a robust rental property portfolio with little to no money out of pocket. So, set your goals, search for the right properties, secure financing, and repeat the process. Happy investing!

Would you like to find out more about the BRRRR method? Watch our most recent video that will further discuss how to buy rentals quickly and easily.