It might be easy to confuse with a sound you make when the temperatures drop outside, but this a little weird acronym has nothing to do with winter season weather. BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. This technique has gained a fair bit of traction and popularity in the realty neighborhood in the last few years, and can be a wise method to earn passive earnings or construct a substantial investment portfolio.

While the BRRRR method has several actions and has been fine-tuned throughout the years, the principles behind it - to buy a residential or commercial property at a low cost and enhance its worth to construct equity and increase money flow - is absolutely nothing brand-new. However, you'll want to think about each action and comprehend the disadvantages of this approach before you dive in and dedicate to it.

Benefits and drawbacks of BRRRR

Like any earnings stream, there are benefits and disadvantages to be knowledgeable about with the BRRRR method.

Potential to make a significant quantity of cash

Provided that you have the ability to buy a residential or commercial property at a low enough cost which the worth of the home boosts after you rent it out, you can make back far more than you take into it.

Ongoing, passive earnings source

The main appeal of the BRRRR approach is that it can be a relatively passive source of income