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The 5 Most Common Mistakes When Using the BRRRR Strategy

The 5 Most Common Mistakes When Using the BRRRR Strategy
By Mark Ainley

Imagine you are in a room at a real estate investor networking event. You hear someone say “BRRRR.” Chances are, they are not talking about the air conditioning, but rather discussing the popular investment method known as the BRRRR method.

So what is the BRRRR strategy when it comes to investing in real estate? This is actually an acronym standing for “Buy, Rehab, Rent, Refinance, Repeat,” and describes this five-step model for investors interested in acquiring properties, adding value to them, and keeping as little of their own money in a deal as possible. The main goal is to have the least amount of personal capital in a deal after the refinance step – this typically being the gauge for a deal’s success (or not!).

Related: Breaking Down BRRRR Strategy In Chicago

The BRRRR method is perfect for investors interested in building a passive income portfolio over time. It is a much more demanding process than purchasing a turnkey rental unit, though it can be highly rewarding. If you feel comfortable with a certain level of risk, have capital available for a down payment, and are ready to roll up your sleeves for a deep-dive into market research, then you are well suited for this real estate investment strategy.

As investors ourselves, we have completed the BRRRR process many times, and have made plenty of mistakes along the way. We would like to share the Top 5 Mistakes Made When Using the BRRRR Strategy, so that you don’t make the same mistakes we did. 

View the full post HERE at GC Realty & Development and be sure to check our latest podcast episode.

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Author

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Mark Ainley
Investor, Managing Broker, and Property Manager
Price is what you pay, Value is what you get! I want to provide value to others and make some money along the way. I have a solid foundation in Chicago real estate because I am a Real Estate investor in both Residential and Commercial/Industrial markets while being a founding partner at GC Realty & Development LLC and co-host of Straight Up Chicago Investor Podcast. In the last 20 years we renovated 500+ properties, invested in commercial properties, managed over 7000 units/tenants, leased...
Price is what you pay, Value is what you get! I want to provide value to others and make some money along the way. I have a solid foundation in Chicago real estate because I am a Real Estate investor in both Residential and Commercial/Industrial markets while being a founding partner at GC Realty & Development LLC and co-host of Straight Up Chicago Investor Podcast. In the last 20 years we renovated 500+ properties, invested in commercial properties, managed over 7000 units/tenants, leased over 4,000 properties, featured on CNBC’s TV show The Deed, co-host on Chicago's AM560 Real Estate Revealed Radio Show, and invited to speak & sit on panels at numerous investment summits across the country. I have also been blessed with the opportunity to be a guest on over 30 top podcast platforms. GC Realty & Development, LLC, currently manages over 1,200 investment properties throughout the Chicagoland area. In 2019, 2020, 2020 and 2022, GCR&D was featured on the Inc. Magazine list of top 5,000 fastest growing companies in the United States. I take great pride in providing valued feedback to beginners and less experienced entrepreneurs on what steps not to take or what steps to take sooner in growing a younger business.
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