Last week we took a quick look at what BRRRR is. This week, we’ll check out some of the best pros for getting involved in BRRRR.

First, you don’t necessarily need a lot of money to do it. If you can get a good short-term financing option, it could really open up the possibilities of you not needing as much hard cash to start your real estate investing.

Second, high return on investment. Once you fix up the property, you have passive income streaming in, that could very well quickly cover any money you spent. Additionally, rehabbed homes can be rented out at a higher rate than homes that are not as redeveloped, giving you an additional return on investment.

Third, you get higher equity. Because you’ve remodeled the home, it’s worth more than what you purchased it for.

Finally, it can be a good way to build your portfolio. If you continue to find great deals, you can continue to build your investments. As long as you know your numbers and what you can afford, you can put yourself in a good position for investing solely with the BRRRR method.

These were a few of the pros of BRRRR. However, it’s not a perfect system. Next week, we’ll discuss some of the drawbacks to investing with the BRRRR method.

 

To learn more about this topic, check out the article that inspired this blog: https://www.biggerpockets.com/blog/brrrr-pros-and-cons