The BRRR method stands for Buy, Rehab, Rent, Refinance, and Repeat. It is a strategy used by real estate investors to acquire, improve, and hold rental properties with the goal of increasing the property's value and cash flow. The key to the BRRR method is refinancing the property after the rehabilitation is complete to pull out the invested capital and use it to purchase another property. Here's a brief overview of the steps involved in the BRRR method:
Buy: Find a suitable property that has the potential for improvement and can be purchased at a discount.
Rehab: Make necessary repairs and improvements to the property to increase its value and rentability.
Rent: Rent out the property to generate cash flow.
Refinance: Refinance the property to pull out the invested capital, which can then be used to purchase another property and start the process again. The refinancing should be done when the property's value has increased due to the rehabilitation and rental income.
Repeat: Continue to repeat the process of acquiring, rehabbing, renting, and refinancing properties to build a portfolio of rental properties.
The BRRR method is a popular investment strategy because it allows real estate investors to acquire properties, improve them, and generate cash flow, all while using other people's money (the bank) to finance the process. However, it's important to understand that this strategy involves a significant amount of work, risk, and expertise, and may not be suitable for everyone. Here's a very popular book that we'd recommend if you want to learn more about the BRRR Method!
Here at Trinity Properties, we have well over a decade of experience working with investors and we actively work with them today. We’d love to help you find your next investment property in Oklahoma!
