It may be simple to puzzle with a noise you make when the temperatures drop outside, but this slightly strange acronym has absolutely nothing to do with winter season weather condition. BRRRR means Buy, Rehab, Rent, Refinance, Repeat. This method has actually acquired a fair bit of traction and popularity in the property neighborhood over the last few years, and can be a wise method to make passive earnings or develop a substantial financial investment portfolio.

While the BRRRR technique has several steps and has been fine-tuned over the years, the concepts behind it - to buy a residential or commercial property at a low price and improve its value to build equity and increase capital - is absolutely nothing new. However, you’ll wish to consider each action and understand the disadvantages of this method before you dive in and commit to it.

Benefits and drawbacks of BRRRR

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

Potential to make a substantial quantity of cash

Provided that you’re able to buy a residential or commercial property at a low enough rate which the value of the home boosts after you rent it out, you can make back much more than you take into it.

Ongoing, passive income source

The primary appeal of the BRRRR approach is that it can be a fairly passive income source