The Pros & Cons of BRRRR
This strategy has both advantages and disadvantages.
The Pros: The Cons:
• Can be a way to gradually scale your rental • Slow approach to cash and wealth building.
• Long term debt, and skimming equity can
property portfolio.
• Acting as a cash buyer to acquire houses fast
and at good prices.
• Achieving lump sums of cash and cash flow.
leave investors in tight spots.
• Lots of equity tied up.
• Headaches and risk of rehabbing and renters.
• Reliance on refinancing.
The reliance on being able to refinance has been a risky stumbling block for many trying to use this
strategy. Some have tapped out credit cards or home equity loans, and have been unable to complete
renovations to a stage where they can rent or resale properties. Others haven’t been able to find
lenders who will give them cash out loans. There is never a guarantee that refinancing will be possible
down the road. There are just too many variables, from personal credit and paperwork requirements, to
construction challenges, and a changing lending landscape.
Filthy Riches: A
Simpler Strategy
for Profiting from
Real Estate
‘Filthy Riches’ is all about
making great money, on
cheaper houses. There
are some similarities in
these strategies. For
example; the ability to
generate both lump sum
paydays, and cash flow.
46