Flipping houses is awesome for cashflow!
But, if you prefer to buy and hold to build a portfolio, then let me introduce, Buy, Renovate, Rent the property out, Refinance, and Repeat the process…
BRRRR is an opportunity, a strategy, where you can accumulate property much faster than the traditional buy and hold strategy.
So, let me tell you why BRRRR is better than the traditional Buy & Hold strategy…
Similar to flipping, you’re buying the property under market value because you’re buying properties that need renovation, properties that other people don’t necessarily want. By buying them cheaply, under market value, you’re then giving the property value uplift by renovating it.
Essentially you’re gaining equity because of two things:
- Because you bought wholesale
- And, you added value (uplift), through renovation
With BRRRR you are creating instant equity at completion of the renovation and you are ready to go again, whereas with traditional buy and hold because you are paying retail, you have to wait for the property to grow in value before you have the equity to go again.
