BRRRR - Buy, Rehab, Rent, Refinance, Repeat
From Buy to Refi, We've Got Your BRRRR Covered!
BRRRR is a five-step real estate investment strategy that focuses on buying undervalued or distressed homes and renovating them into income-generating rental properties.
The BRRRR method is an effective way to buy and hold investment properties. This allows easier access to your capital since you don’t need to sell the property to access proceeds and maximizes your returns since you do not have to pay short-term capital gains taxes.
Strategic Benefits
Tax Smart + Equity Access
- Loan proceeds aren’t taxable, so Cash-out refinances are tax-free, meaning you can leverage your property’s equity without selling and triggering capital gains tax.
- Build your real estate portfolio using property equity, dodge capital gain taxes and keep growing your wealth.
- Use loan proceeds for business purposes, such as making renovations or for down payments on new acquisitions, the interest is generally tax-deductible.
Increase your Return on Equity (ROE)
- Property Appreciation: in addition to buying at the right purchase price, Real Estate Investors are well-positioned to capitalize on Home Price Appreciation (HPA) and the increases in their property's equity.
1031 Exchange Increase Cashflows
- Take advantage of a tax-smart opportunity by turning a property's equity into increased cash-flows.
- Exchanging a property with significant equity into increased cash-flows & move your holdings into stronger growth markets.
