The first step involves purchasing a property, typically one that needs some renovation. Investors often look for properties below market value, such as distressed or outdated homes, which have the potential for improvement.

 

After purchasing, the investor renovates or refurbishes the property. This could involve anything from cosmetic upgrades, like painting and flooring, to larger structural repairs. The goal is to increase the property’s value and appeal to potential renters.

 

Once the property is refurbished and its value has increased, the investor refinances the mortgage based on the new, higher property valuation. This allows the investor to pull out some or all of the original investment, which can then be used to purchase another property.

 

The final step is renting out the property to generate a steady income. By doing this, the investor not only earns rental income but also retains ownership of the property, allowing them to benefit from future appreciation.

 

The BRRR method is highly effective for building a portfolio of rental properties. It allows investors to recycle their capital, using the same funds repeatedly, while growing long-term wealth and passive income streams. However, it requires careful planning, knowledge of the property market, and a clear strategy to succeed. If you are interested in getting started and would like someone to help do this for you, get in contact today using the form on the right.