BRRRR Method: Best Way to Repeat

OK, so you’ve done all the hard elements of your BRRRR method real estate investment. You found the property, the renovation is complete, your new tenants have moved (or are imminently moving) in, and you’ve secured your refinancing. 

All that’s left to do is repeat the process, night?

Well… Hold your horses for one minute. Before you jump headlong into your next real estate purchase, it’s time to take stock of all that you’ve learned through this first process.

Why the BRRRR Method Continues to be a Learning Curve

• Understanding the pros and cons 
• Why every BRRRR method purchase is different

Understanding the pros and cons

No matter whether it’s your first property or your 50^th, every BRRRR process provides us with valuable intel. Learning from this makes your chances of success (and profit levels) increase as you repeat.

There are many advantages and disadvantages to be aware of. The former include:

• The opportunity to build a property business with very little (if any) upfront capital.
• The potential return on your investment (ROI) can be high.
• The ROI can be infinite. In other words, you continue to enjoy a regular income for as long as you own the property (or properties).
• Real estate has consistently been an excellent way to build wealth over the long term.

On the flip side, the BRRRR method has some disadvantages:

• You may well end up paying more for the renovation than anticipated. Many a rehab has gone awry once you start stripping away at the bricks and mortar…
• There’s a risk that you won’t find a tenant immediately or that your property has extended periods without being rented.
• It’s more expensive to finance a BRRRR property than a primary residence.
• There’s a risk that you over-estimate the DSCR and must wait longer than anticipated to cash-out and refinance.

Why every BRRRR method purchase is different

Quite simply, every time you rinse and repeat you’ll have ever-changing variables. The property market is often volatile, the economy changes, more people jump on the BRRRR method bandwagon—making even distressed real estate more expensive to purchase…. The list is endless.

However, if you document the process of each journey, keep a careful eye on the property market in general, and build up a good network of tradespeople, real estate agents, and other industry professionals…? Well, there’s absolutely no reason why even a complete novice can’t draw a good yield over time.

Always remember that property trends are subject to what’s in and out of fashion. For example, five of the best ways to increase the desirability (and, therefore, value) of a property in today’s market include:

1. Replacing the windows.
2. Completing a basement refurb.
3. Remodeling kitchens and bathrooms.
4. Exterior landscaping.
5. Replacing exterior and garage doors.

Wise rehabbing choices are what make and break the process. You want the work to be done to a high enough quality that it’s long-lasting and looks the part, but not so expensive that it eats into your profit margins. Never forget that you’re creating a home to rent out—and this is very different from rehabbing a property to live in.

Once you have that firmly in your mindset (and the more times you do it, the easier it becomes), then the likelihood of better profit potential increases.

Explore Your Finance Options at BRRRR Loans

One of the most crucial elements of a successful BRRRR method investment is to secure financing at the lowest rate. BRRRR Loans is a leading US lender that specializes in providing the capital for such ventures.

Not only are our interest rates the best in the business, but our repeat customer rate is the envy of the industry. Let’s face it, customers vote with their feet—and we’re deservedly proud that so many investors choose to borrow from us time and time again.

Start your financial journey at https://www.brrrr.com/loan-programs and discover why we’re the lender of choice for so many BRRRR method real estate investors.