You’ve overheard trendy real estate investors talk about BRRRR (Buy, Rehab, Rent, Refinance, Repeat). In all your usual forums and favorite social media channels, experts extol the virtues of the method. You get the basic concept and you’re more than a little BRRR curious . If you want to learn how to BRRRR too, you might be wondering how to get started?
Central Florida has dozens of thriving areas, each with their own personality that make perfect real estate investment areas. So, you should have no trouble finding a project that fits your budget in a location desirable to you.
Do you currently own investment property? If not, do your research and consult with experts, who are well versed in good investment property, not just ones with “good bones.” (What the heck does that even mean anyway?) Narrow your search before you start wasting time driving around looking at duds. An investment real estate expert can help you identify the types of projects that fit your portfolio goals.
Understand Rehabbing Costs
If you plan to do any of the rehabbing yourself, please honestly assess your skill levels. Letting your ego take on more than you can actually handle will cost way more in the long run. Especially when you need to call in professionals to fix whatever you screwed up to pass building code inspections. If you know you’ll need help, get estimates from reputable contractors who actually call you back.
Skilled friends who owe you a “solid” also make great contacts… if you can get them to call you back. Knowing your limitations and estimates for professionally done projects will save you from yourself and keep you within your budget.
What Happens When You Refinance
Let’s say you found a diamond in the rough. You’ve rehabbed it and now have renters happily living in your new investment property. Sweet. This is where all that aforementioned research comes in handy.
That house you bought for a steal and made strategic improvements to drastically increased its worth. An appraisal confirms this. Time to refinance! With a mortgage amount at 75% of the new worth, you pay off the previous mortgage. But you also find yourself with a chunk of change to plunk down on a whole new project. So you begin again.
Repeat this cycle enough times, and you may find yourself with a completely different problem: keeping up. Having a handful of rental properties, where you serve as the landlord might be doable as a full-time gig. Having more than that can quickly become overwhelming, especially if you also hold a full-time job. Building wealth for the future shouldn’t mean killing yourself right now to do all the things.
Remember: all work and no play make Jack burnt the hell out and a lousy family member and friend. Don’t be like Jack.
A good property manager can give you back your life and make that investment property much less stressful.
Get Connected with The Realty Medics
Want rental property peace of mind? Trust a full-service realtor, who can help you continue to expand your BRRRR property portfolio. Want to learn more about how to BRRRR in the Orlando area? Talk with leaders in investment real estate and property management in central Florida at The Realty Medics. Call us today at 321-218-4753 or complete our online form.