It might be simple to confuse with a noise you make when the temperatures drop outside, however this slightly unusual acronym has nothing to do with winter season weather. BRRRR means Buy, Rehab, Rent, Refinance, Repeat. This technique has gained a fair bit of traction and appeal in the realty neighborhood recently, and can be a smart method to make passive income or build a substantial financial investment portfolio.

While the BRRRR method has a number of steps and has actually been improved over the years, the concepts behind it - to purchase a residential or commercial property at a low price and enhance its value to construct equity and increase money circulation - is absolutely nothing new. However, you'll desire to consider each step and comprehend the drawbacks of this approach before you dive in and devote to it.

Benefits and drawbacks of BRRRR

Like any income stream, there are advantages and downsides to be aware of with the BRRRR method.

Potential to make a substantial quantity of money

Provided that you have the ability to purchase a residential or commercial property at a low sufficient rate which the worth of the home increases after you lease it out, you can make back a lot more than you take into it.

Ongoing, passive earnings source

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