BRRRR Method vs. Turnkey Rentals

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

What if you desire to invest more than your retirement accounts will allow? Fortunately, there are other methods to earn more cash without putting in extra hours at the office. Real estate is among the more typical ones. While property investing isn’t as passive as many declare it to be, it can be a great way to create an extra earnings stream without a lot of work.

If you decide to embark on a real estate investing journey, you’ll find that there are a great deal of different alternatives available to you. Turnkey realty and the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method are just two of them. Keep reading to get a much better understanding of what these genuine estate financial investment approaches entail, the benefits and downsides of each, and which may be the much better option for you.

BRRRR Method Overview

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

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

Buy a $300,000 home ($ 60,000 down payment