BiggerPockets Real Estate Podcast

The BRRRR Formula Has Changed (It Still Makes You Rich) | AMA (Ask Meyer Anything)

41 snips
Feb 21, 2025
The podcast dives into the revamped BRRRR strategy amidst rising interest rates and high home prices. Listeners learn how to discover undervalued properties for profitable investments. An aspiring 18-year-old investor is advised to pause before diving into rentals. The discussion also highlights the transition from single-family to multifamily rentals, emphasizing patience and strategic growth. Additionally, the risks of investing in small towns are explored, along with tips on how to navigate the market smartly.
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ADVICE

Finding BRRRR Deals

  • Analyze your resources (time/money) to pick a suitable deal-finding strategy.
  • If you have more money than time, consider direct mail or cold calling; if you have more time, focus on the MLS.
INSIGHT

BRRRR Expectations

  • Perfect BRRRRs, where you recoup all equity, are rare in the current market.
  • Adjust your expectations and consider pulling out even a fraction of your initial investment as a win.
ANECDOTE

Henry's BRRRR Success

  • Henry refinanced properties bought three years prior, pulling out $50,000 despite initially putting no money down.
  • This demonstrates the long-term potential of BRRRR, even if immediate full equity recovery isn't feasible.
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