Mastering the BRRRR Strategy

This chapter delves into the use of a rehab calculator for estimating renovation costs and discusses the financial intricacies of the BRRRR real estate investment strategy. It emphasizes the importance of mindset in evaluating cash flow and return on investment, highlighting how leaving some capital in a deal can still yield substantial benefits.

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The BRRRR method can be taught by no one better than David Greene, author of Buy, Rehab, Rent, Refinance, Repeat, and adorably dubbed “Sir BRRRR” by co-host Rob Abasolo. While David may be a master of BRRRR budgets, schedules, and rehabs, Rob isn’t as familiar with doing full-on buy, rehab, rent, refinance, and repeat rentals. To not only help out Rob but the BiggerPockets audience as a whole, David does a full walkthrough on his latest BRRRR.

This hillside property situated in David’s native San Francisco Bay Area has huge potential to become a cash-flowing, equity-increasing deal. David is turning this large home into multiple smaller units that will rent out to A-class tenants and should net him a six-figure equity boost simply by doing these cash-flow-first renovations.

David walks through exactly how to find BRRRR properties, telltale signs of a good (or bad) BRRRR deal, how to use the BiggerPockets BRRRR calculator, funding options for your BRRRR (from David's broker!), writing up a contractor scope of work (SOW), and how to build cash flow when there isn’t any to be found. You’ll also hear how David had a surprise run-in with the cops when walking this property. Action, excitement, and lots of equity are all coming up in this episode!

In This Episode We Cover:

The first signs that a property may be a great BRRRR deal

Using the BiggerPockets BRRRR calculator to evaluate deals and raise private capital

Financing options you have when funding (and rehabbing) a BRRRR

Contractor bids and BRRRR budgets (even if you don’t have rehab experience)

Before photos and David’s exact conversion plan to turn a single property into a cash-flowing multifamily

The huge wealth-building benefits of getting creative when finding value-add real estate

And So Much More!

Links from the Show

BiggerPockets Forums

BiggerPockets Youtube Channel

BiggerPockets Calculators