Real-estate investors who embrace the “BRRRR” method buy a home, rehab it, rent it out, refinance it to withdraw cash, and repeat to buy their next property. Thomas Trutschel/Photothek via Getty Images
- Rental-property owners look for reliable ways to scale up quickly and ensure steady cash flow.
- One way: buy a home, fix it up to rent out, then refinance to get cash and buy the next one.
- Two investors lay out the reasons they’re now shying away from that model, nicknamed BRRRR.
Jessica Davis Holland, an Austin, Texas real-estate investor, and her husband recently spent $225,000 on a three-bedroom, two-bathroom home in the growing suburb of Cedar Creek.
It was the fourth property in the last three years that the couple had purchased and renovated. Their initial goal, as with their previous projects, was to turn the house into a cash-flowing rental property, then use money they’d get after refinancing to purchase their next fixer-upper.
Read more here: https://www.businessinsider.com/real-estate-investing-brrrr-method-scale-rental-properties-housing-market-2023-3
