If you’re looking to make tons of cash and passive income in 2023, you need to learn about the power of using the BRRRR method in real estate investing. Compared to old-hat ways of real estate investing, BRRRR allows you to make money in a consistent, often laid-back, and reliable fashion. For families looking to get a leg up in the investment game, the BRRRR method has been a true game-changer.

Defining the BRRRR Method

Without a solid understanding of the BRRRR method, it can be difficult to make a killing in the real estate game. However, the process is much simpler to understand than you might assume. By breaking the BRRRR method into its separate parts, you can begin using this revolutionary real estate investment process this year:

Step 1: Buy

Before anything else, you’ll need a property to apply the BRRRR method to. The closer you can get to a “fixer-upper,” the more effectively you can use the BRRRR method. Ideally, you want a house that you can buy below market value, due to an extensive need for repairs, maintenance, and similar issues. Do not go with a property that will cost a fortune to fix up, however, as this could put you at risk of losing money at certain points of the BRRRR process. Understanding how to spot the perfect mix of potential and maintenance needs in the properties you scope out is key during this step in the BRRRR process.

Step 2: Repair

Now that you’ve got the perfect property for your BRRRR method journey, you’ll need to start on repairs and maintenance tasks immediately. Not only will this help your property shine, but it will ensure you’re building plenty of equity into the home that will come useful during the fourth, refinancing step. As you repair the home, you should try to make it liveable as quickly as humanly possible. This stage can also be the most work-heavy portion of the BRRRR method, so get ready for some hard work. Once it’s in a liveable state, you can move on to the third step in the BRRRR method…

Step 3: Rent

To make the BRRRR method work, you’ll need to understand when to begin renting out your home. Ideally, you want to generate a positive cash flow from your rental setup that will cover the loan costs, and maintenance repairs, and even leave a little cash leftover to help you pad your bank account. You’ll want to rent the house in a way that allows you to continue working on more minor repairs, and which will allow you to make other important equity improvements as well. Doing so will ensure you’re properly set up for making the most money possible off of your use of the BRRRR method, after all.

Step 4: Refinance

Now that you’ve made your “fixer-upper” into something truly stellar, you’re ready to take on the most lucrative aspect of the BRRRR method: refinancing. By refinancing the home you’ve built into an amazing piece of property, you can make a ton of money off of it. Ideally, you want to make enough off of the refinance to ensure your initial below-market-value investment pays off big time. Be sure to take your time with this step, as it will be the most essential part of making as much money as humanly possible off of the BRRRR method.

Step 5: Repeat

Now that you’ve completed your first refinance, you’ve technically completed your first BRRRR job. However, to make this system truly incredible, you now need to repeat the process with a new property. Finding a queue of amazing properties you can purchase for below market value, and then renovate (while making passive income with rental fees), is the key to becoming a true BRRRR method success. The more often you repeat the BRRRR process, the more you’ll make off of this fantastic and innovative real estate investing method.

Take Your Financial Future Into Your Own Hands with the BRRRR Method

Now that you understand the gritty details of the BRRRR method, you’ll be ready to make piles of cash in 2023 (and beyond). Be careful during your first run of this method, as there are always small financial, economical, and logistical details that could end up complicating the process. If you can afford to, hiring a financial advisor to assist you with setting up your first BRRRR-fueled real estate investment is highly recommended. Regardless, however, you should have the ability to make this innovative process work for you, allowing you to secure your financial future as a result.