How The BRRRR Method Works
The BRRRR Method can provide passive income and a revolving method for purchasing and owning rental property. The method?
  • Buy a property: The property you purchase should be distressed and needs some work to get up to code and ready to rent. Because of the home’s condition, the home would be appraised lower and cheaper to purchase.
  • Rehab/Renovate the property: Because the property is distressed, it will require extensive work. In this step. Renovate the property to make structural, safety and aesthetic improvements.
  • Rent the property: Determine the appropriate rental longevity (Vacation Short-Stay or Long Term) and price accordingly. Then find people to rent the home.
  • Cash-out refinance the property: With a cash-out refinance, you are converting your equity into cash. You access your equity by taking out a higher mortgage, borrowing more money than you currently owe. The cash can be used for purchasing another property.
  • Use funds from refinance to buy additional properties: In this final step, you begin the process all over again. Using the funds from your cash-out refinance, purchase another distressed property, rehab it, rent it out, and refinance that property.
  • Repeat the process until you have a manageable portfolio.