The BRRRR(Buy,Rehab, Rent,Rebuild and Repeat strategy) is one of the most powerful wealth-building tactics that I have encountered. It combines “Forced Appreciation” and “Velocity of Money” to allow you to build a scalable portfolio of cash-flowing assets using a limited amount of cash or private/hard money. Daniil Kleyman has personally used the BRRRR strategy to so far build an income-producing portfolio worth over $10 million. It cashflows CLEAN over $20k/month.
This is how Daniil Kleyman got started and how most investors get started in building up rentals. Buy a cheap house, rehab it, and lease it out. The benefit of this strategy is if you’re buying houses in need of repair, you can typically get a bigger discount on them and build “sweat equity”.
There is a variation of this strategy that is literally one of THE most powerful wealth building strategies I’ve ever encountered and it’s called BRRRR: Buy, Rehab, Rent, Refi, Repeat. This is how he got started and how he built up the first $6 mil or so of his portfolio.
And the idea is pretty simple:
- Find a discounted house in need of repairs (you can do this with apartment buildings also)
- Rehab it to make it tenant-ready
- Lease it out
- Go to a local bank or whoever will do your permanent financing and get the property reappraised at a higher value
- Refinance out an amount high enough to pay off your full investment (or your short-term loan if you borrowed money).
- Now you have your entire original investment back ready to deploy into the next deal! And you have a property that cashflows with no money tied up!