Keep the house, rent it, and pull your cash back out

Every letter of BRRRR, with our team

1. 1

   Buy

   Our AI picks and our acquisitions team find a house where the rent and the after-repair value both work.

2. 2

   Rehab

   Our licensed, insured crews do the work to a rental standard: durable floors, sound mechanicals, a kitchen that lasts.

3. 3

   Rent

   Our property management finds and screens the tenant and collects the rent, for 8% of the rent collected.

4. 4

   Refinance

   Our lending team runs a cash-out refinance at up to about 75% of the new value, subject to lender approval, which pays off the rehab loan.

5. 5

   Repeat

   The cash that comes back out becomes the down payment on the next one.

The sample deal, kept as a BRRRR

A 3 bed brick bungalow on Detroit's east side. On this sample, the rent covers every cost with $39 a month to spare, and the refinance hands back $30,250, about 80% of the $38,030 you put in. The cash flow is thin, as it often is at this price; the real gain is how much of your cash comes back out.

Every deal is different. These are estimates, not a promise of profit. Real estate investing carries risk, including the loss of the money you put in.

Sell it or keep it

You choose when the rehab is done. Here is the sample both ways.

• Sell it on the MLSKeep it as a BRRRR
• What you get Sell it: $17,875 estimated profit, once Keep it: $39 a month and $30,250 back at the refinance
• Your cash after Sell it: Back with the profit at the sale Keep it: $7,780 stays in the house
• How long Sell it: About 5 months Keep it: Years, as long as you keep it
• Ongoing work Sell it: None after the sale Keep it: Tenants and repairs, run by our property management
• The main risk Sell it: The sale price comes in low Keep it: Vacancy, repairs or a refinance that appraises low

Questions about BRRRR