As long as you are willing to put in some sweat equity, the BRRRR method is one of the best methods to start investing in real estate with little or no money down and slowly build your real estate portfolio.
The BRRRR (Buy, Rehabilitate, Rent, Refinance, Repeat) method is a real estate investment technique in which you purchase a distressed property, fix it up, rent it, cash out refinance it to fund your next BRRRR rental investment property.
The first step in the BRRR strategy begins with you purchasing the property. It may sound simple, but it’s usually one of the most challenging steps, especially for first-time investors.
As mentioned earlier, people need to research the property they’re thinking of buying. The research should include rehab costs as these costs can wallop you.
You are at the end of the strategy, where you get to do it all over again. Finally, you utilize the previous rental property’s cash-out refinance to help finance the purchase and renovation of your second property.