The acronym BRRRR stands for Buy, Rehab, Rent, Refinance & Reinvest. The BRRR Strategy is a hybrid investment strategy that captures the short term equity gains of rehabbing and the long-term returns from renting the property. In the BRRR Strategy, an investor buys a distressed property at discount, rehabs the property, rents the property & then refinances the property to pull out equity in the property.
The acronym BRRRR stands for Buy, Rehab, Rent, Refinance & Reinvest. The BRRR Strategy is a hybrid investment strategy that captures the short term equity gains of rehabbing and the long-term returns from renting the property.
- Step 1: Buy a Distressed Fixer-Upper Property at a Discount
- Step 2: Rehab the Property
- Step 3: Rent the Property to Tenants for Long-Term Gains
- Step 4: Refinance the to cash-out equity in the deal
- Step 5: Reinvest the profits cash into another BRRR Deal
