The BRRRR Method is an investment strategy that allows you to expand your real estate investment portfolio at a rapid pace. When executed correctly, it has the potential to deliver a tremendous return on your initial investment. Also known as the Buy, Rehab, Rent, Refinance, Repeat Method, this strategy involves fixing up a distressed property and then refinancing it without closing costs (often through a cash-out refinance), in order to withdraw the equity you’ve built.

FREE WEBINAR: Cracking The BRRRR Code - Recording

Step 1 & Step 2 - Buy & Rehab

Buy a dilapidated property at 70% or less of its market value. This is generally considered buying distressed properties. You will buy at a steep discount, then spend your money on fixing it up until you’ve got a nice property that you can rent out for a profit. It’s important to note that many investors are looking for these same types of deals, so don’t expect them to be easy to find. However, if you do find one, and complete step 2 and 3 successfully, you should be able to reap big rewards.

Step 3 - Rent

After you have purchased a property, you need to rehab it and rent it out. Always make sure that you have enough of a cushion (10%+) so that if your renter is late on their payments, you don’t end up in foreclosure. For example, if your rent is $1,000 per month and your expenses are $700 per month plus utilities, make sure your tenant pays at least $1,300.

Step 4 - Refinance

Once you’ve purchased a property, take out a loan using it as collateral. The new loan will typically be larger than your previous mortgage, giving you cash with which to buy more properties. If you use your own money for down payments and closing costs rather than leveraging debt, congratulations! You’re doing it right.

Step 5 - Repeat

Now that you have most of your money back you can do it all again

As Chicago’s Responsive Property Manager™, we provide our clients the highest possible value through our full-service Property Management and Brokerage Services. The core of our business centers around the principle of being Responsive. As a service-based business, this philosophy guides our company every day.  We’ll simplify your life by taking away the day-to-day pains of real estate investment, give you privacy as the owner, and your time back to do other things. Connect with us to learn the value you’ll get when working with our team.

Download your FREE copy of: What They Don't Tell You About Real Estate Investing

See our available Turnkey Cash-Flow Rental Properties
Please give us a RATING & REVIEW (Thank you!)
Want extra Hacks & Tricks? Follow us on Facebook & Youtube!
Looking for a breakthrough in your career? Join Our Team!
SUBSCRIBE on to our podcast on iTunes | Spotify | Stitcher | TuneIn Radio 
Need A Responsive Property Manager? We’ve got you covered!