It may be simple to confuse with a noise you make when the temperatures drop outside, but this slightly strange acronym has nothing to do with winter season weather condition. BRRRR represents Buy, Rehab, Rent, Refinance, Repeat. This method has actually gained rather a bit of traction and popularity in the realty community in the last few years, and can be a wise way to earn passive earnings or construct a substantial investment portfolio.

While the BRRRR technique has a number of actions and has been improved over the years, the concepts behind it - to purchase a residential or commercial property at a low price and improve its worth to construct equity and increase cash circulation - is absolutely nothing new. However, you'll wish to consider each action and understand the downsides of this approach before you dive in and dedicate to it.

Benefits and drawbacks of BRRRR

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

Potential to make a considerable amount of cash

Provided that you're able to purchase a residential or commercial property at a low sufficient cost and that the worth of the home boosts after you lease it out, you can make back much more than you put into it.

Ongoing, passive earnings source

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