BRRRR (Buy, Rehab, Rent, Refinance, Repeat)

The first letter in “BRRRR” stands for buy. This step is key, as you need to find a suitable property if you want your project to have a positive outcome. Make sure you find a good investment deal – for both potential property value and rental income. Factor in the costs involved: renovations, rental expenses, and profit margins. Fully understand the cost of renovations and the potential resale value.

The first “R” in this strategy stands for renovate. This is the process of carrying out all the repairs and making it suitable for tenants.  Remember, it’s a rental property and the costs need to be worth the rent. Always prepare for the costs in advance, and make sure you’re realistic about funding. After this, find reliable, high-quality contractors if needed and get started!

The next stage in the strategy is to rent out the property. This includes finding and screening potential tenants, making a tenancy agreement, and managing the property. We can provide you a step by step process on how to get great tenants and screen properly. It’s important to note that becoming a landlord is a big responsibility.

After successfully renovating and renting out the property, next, you can start thinking about refinancing options. It’s important to plan carefully at this stage and consider your options.  Look at what different banks can offer, and how much you can borrow against the new value of the property – some lenders may not offer additional borrowing on rental properties. Once you know what your options are and what your total budget would be, you can start to devise a strategy for your next property.

Lastly, you can repeat this process by refinancing your second property to finance the next one – and so on. This is a learning curve, and you will gain wisdom as you go along. Make sure you carefully plan each stage of this strategy, and continue planning as you acquire your additional properties. This is the best stage, because you are basically recycling the same money over and over! We bought millions in real estate last year with this strategy!