BRRRR Method vs. Turnkey Rentals

Physicians typically make a good living, however a high salary doesn’t always guarantee a well-funded retirement. It’s why workers are motivated to invest their earnings throughout their careers so their cash can grow as they work. Retirement funds connected to the stock exchange, such as 401( k) s and IRAs, are popular ways to grow one’s earnings, however much of these accounts are restricted by how much you can contribute each year.

What if you wish to invest more than your pension will permit? Fortunately, there are other methods to earn more money without putting in additional hours at the office. Real estate is among the more common ones. While realty investing isn’t as passive as numerous declare it to be, it can be an excellent method to create an additional earnings stream without a great deal of extra day-to-day work.

If you choose to start a property investing journey, you’ll discover that there are a lot of various choices available to you. Turnkey property and the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) approach are just two of them. Keep checking out to get a much better understanding of what these real estate investment methods entail, the advantages and disadvantages of each, and which may be the better choice for you.

BRRRR Method Overview

The BRRRR approach (aka house turning) includes buying a distressed residential or commercial property, renting it, and then re-financing it to get cash to fund another rental residential or commercial property (and another, and another).

Here’s a simplified variation of the BRRRR approach (we’re not including costs or taxes in this example):

Buy a $300,000 home ($ 60,000 deposit