BRRR

House Flipping is "Buy and Sell", while the BRRR Method is a specialized business model that is a type of "Buy and Hold". BRRR is the business model to build a real estate empire, property by property. The magic happens in the Refinance, a financial tool to leverage your assets for more cash. After a refinance on a new mortgage, you can get your cash back to invest in another property. This is an opportunity to build a real estate empire with a relatively minimal initial investment.

BBRRR Stands for:

Buy, Renovate, Refinance, Repeat.

1. Buy - When you buy, this is the best time to lock in your value, which will increase.

2. Renovate - investment adds value and ROI

3. Refinance - A new Appraisal will show that the Renovation substanially increased the value of the property. You can now refinance the mortgage at the new valuation, and immediately get your cash back out.

4. Repeat - Use this cash for the downpayment on the next property, and repeat.

As a "Buy and Hold", you need solid tenants and a safety fund to make sure the mortgage(s) get paid.

Upside: Established business model designed to build wealth

Downside: Risk and Capital are involved. And managing rental properties is not necessarily "passive" income.