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Why You Should Buy 'Bad BRRRR Deals'

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BRRRR deals have been one of the most popular ways to build wealth in real estate. Even for beginners, the BRRRR method isn’t terribly tricky. You buy a house, rehab the house, rent the house, refinance the house, and repeat the process. But, each of these steps can become harder and harder to accomplish as the housing market changes. Now buying a house is more expensive, rehabbing a house takes longer, refinancing can cost you one to two more interest points, and repeating is difficult when you can’t take cash out of the deal. So what do you do?

As a recovering flip addict, Tarl Yarber knows the value of monthly cash flow. He stopped flipping and started BRRRRing when he realized that onetime flips weren’t really building his wealth. Over the past few years, Tarl has BRRRRed hundreds of deals, but have rising interest rates temporarily ended the BRRRR strategy? Is there any cash flow left after paying such a steep mortgage payment?

You might be wondering the same thing, and Tarl will describe why even with less cash flow and worse financing options, a BRRRR deal can still be a longterm home run if done correctly.

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Have Rising Interest Rates Killed the BRRRR Method?
   • Have Rising Interest Rates Killed the...  
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How to Fail at The BRRRR Strategy:
   • How to Fail at The BRRRR Method | 4 S...  
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Grab the BRRRR Book:
https://store.biggerpockets.com/produ...
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Why Is Cash Flow So Hard To Find?
https://www.biggerpockets.com/blog/ca...
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Fed Interest Rate Hike—Why It Matters, and What It Means for Real Estate Investors:
https://www.biggerpockets.com/blog/fe...
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Connect with Tarl on BiggerPockets:
https://www.biggerpockets.com/users/t...
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Follow Tarl on Instagram:
@tarlyarber or   / tarlyarber  

00:00 Is Now a Good Time to BRRRR?
01:52 Before the BRRRR Photos
04:30 The Numbers
07:11 The After Photos
08:29 Did the BRRRR Work?
12:14 The Final Numbers (and Interest Rates!)
19:32 Keep or Sell the Property?

posted by nosora7a