Recycling Capital - Buy, Renovate, Rent, Refinance, Repeat...

Excited to share a powerful real estate strategy that has been working for me. It is also what my partners and I will be utilizing with our portfolio. I have to admit, it is harder to execute this strategy with the current rates being higher, but with the right property, this strategy will grow any portfolio quickly:

BRRRR (Buy, Renovate, Rent, Refinance, Repeat) method - This strategy involves purchasing a distressed property, renovating it to increase its value, renting it out, then refinancing the property to extract the initial investment and finally, repeating the process over and over again.

Not only does this strategy allow for passive income through rental income, but it also creates wealth through property appreciation and the power of leverage (using bank money). If executed correctly, the BRRRR method can lead to financial freedom and a strong real estate portfolio. For those looking to take their real estate investment game to the next level, I highly recommend learning more about the BRRRR strategy.?

Here is how we utilized this strategy from our last acquisition:

• Purchase Price: $110,500
• Renovations: $25,000
• After Repair Value: $195,000
• Cash-out Refinance: $146,250 (75% Loan To Value required by bank)

From the cash-out refinance of $146,250, we got back the initial capital from the purchase ($110,500) as well as the renovation costs($25,000) and ready to repeat and deploy for the next investment. When?the $17,400 rental income for the year is included, the?overall total profit is around $28,150 (rental income + refinance leftover).

Also, the profit from the refinance is Tax Free since it’s considered a “loan” and not actual "income." The property still cashflows with the new mortgage and rent will continue to increase with #inflation.

#realestateinvestment?#realestatetips #brrrr