What is the BRRRR method in residential real estate investing?

The BRRRR method stands for Buy, Rehab, Rent, Refinance, Repeat, and is a common real estate investment strategy involving buying a distressed property, fixing it up, renting it out, and then refinancing to cash out on the increased value in order to fund additional investments. Before working with this strategy though, there are several important considerations. Below, we'll walk through more about how this process works, along with the potential risks.

How does the BRRRR method work?

This method (as the acronym implies) is comprised of the following components:

What are the pros / cons of the BRRRR method?



Overall, the BRRRR method is a solid way for investors to get involved in residential real estate with little up front capital but, like most things, is not without risks / caveats. So, be sure you are doing your due diligence, don't stretch yourself too much financially on a project, and be conservative in your cost estimates to ensure you're getting a positive ROI for your efforts.