1. BRRRR Strategy for the New Investor
This is the first in a multi-post series on financing your rental investment properties using the BRRR strategy (Buy, Rehab, Rent, Refinance, Repeat).
Is the BRRRR strategy right for you? Ask yourself the following questions: Will my full time job and traditional investments (stocks, IRA, 401K) give me the long term security I require after retiring? Is my investment portfolio diversified enough through the years to cushion me against market fluctuations? Am I currently achieving the ROI goals I calculated on my investment portfolio?
If you answered no to any of these questions, consider the BRRRR strategy.
First, the BRRRR goal is to increase exponentially your monthly passive income by acquiring multiple rental properties over a period of years. Second, you are looking for a hedge against market volatility and although your equity may rise and fall through the years, you are focused solely on cash flow. Third, you achieve significant benefits such as depreciation and cost segregation which will minimize your tax burden. Fourth, you look forward to the day you can retire and live off your passive income indefinitely and enjoy the lifestyle you build for you and your family.
If this appeals to you, then the BRRRR strategy may just be the right investment for you.
Looking for funding? REI Trader, LLC has purchase, refi and fix and flip loan programs for your SFR, rental and multi family portfolios. For rates and terms, please email jonathan@reitrader.com
Jonathan Mednick has been real estate investor since 2002. He is a co-founder of REI Trader, LLC and a licensed real estate broker since 2011 with Real Equity, Inc. He has extensive experience in all areas of real estate investing and lending. To date, he has completed over 1,700 projects.
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