How to Use the BRRRR Method for Real Estate Investing

How Does the BRRRR Strategy Work?

BRRRR stands for “Buy, Repair, Rent, Refinance, and Repeat.” This real estate investing method describes a strategy and framework used by investors who have the desire to build passive income streams over time through collecting rents from tenants and building equity in properties.

1. Buy

Looking for undervalued properties becomes an essential step for any wise investment, but it remains especially important when it comes to the BRRRR method.

2. Renovate

Once you’ve bought your property, you’ll have a good idea of how much you can afford to spend on repairs, as well as what specific repairs you’ll need.

3. Rent

If you were a house-flipper, this is the point where you’d sell your home. But with the BRRRR method, it’s time to turn it into a cash flow-generating asset. That means renting it out.

4. Refinance

Here’s where the BRRRR method really shows its value. Once your property has been renovated and rented, you can proceed with a cash-out refinance, which basically converts the home’s equity into cash.

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