BRRRR Method in Kansas City

Brian Dinkel
Published on May 7, 2020

BRRRR Method in Kansas City

One of the most popular investing methods out there right now is something called the BRRRR method. In today’s post I’m going to spend a little time going over how it can help you with your real estate investing goals.

When it comes to investing in real estate there are a lot of ways investors determine if an investment is going to be worthwhile. Investors use many different formulas to make that decision Some use LTV, cap rate, the 1 % rule, the 50% rule and even the 70% rule when they are analyzing deals. One of the most popular methods currently being used is the BRRRR method.

What Does BRRRR Even Mean?

The BRRRR method is a very popular formula used by real estate investors in Kansas City who are just starting out. BRRRR stands for buy, rehab, rent, refinance, and repeat. Investors that use this formula are able to begin a cycle of real estate investment, building a well-stocked portfolio that builds wealth for the investor and their family.

Step 1 – Buy

In order to start using the BRRRR method you first need to find a property that you want to purchase. That’s where I come in. I can help you find the right property and provide you with a complete analysis so that you can be sure that you are purchasing a great deal. Buying that first property can be hard, but with an agent that understands investing you’ll be able to find discounted Kansas City properties that will make a great addition to your investment portfolio.

Step 2 – Rehab

The next step is to start the rehab. This part can also be tricky, especially if you don’t have construction experience. As I’ve said in other articles running your numbers is very important. Do you understand all of the costs that will be associated with the rehab? If not, you’ll want to work with someone that does. You may think you are able to correctly estimate all costs, but it’s always a good idea to get the opinion of a professional. At Brian Dinkel Homes, when you purchase a property from us, you will receive an expert analysis of the property that will help you accurately estimate any repair costs you may face. There are things first-time investors will often overlook, but working with Brian Dinkel Homes will help to make sure you have all of the facts you need.

You’ll also want to find simple ways to add value to the property that won’t destroy your budget. Some of the easiest and most cost effective things you could do, fix up the countertops, replace old windows, improve the flooring, or swap out the appliances. Even little things such as changing out the hardware, updating the landscaping, or a fresh paint can add real appeal to your property when it’s time to rent it out.

Step 3 – Rent

The key to success when investing in rental properties is to find the right tenants. This may seem like a daunting task but if you screen properly you’ll find great tenants in no time. When deciding what to rent your property for look for comparable properties that are renting in your area. Price your rental slightly lower or add a feature that the other properties don’t have. You could include internet, basic furnishings, patio furniture, or a wine fridge depending on your target demographic. Get creative with it so you can attract great, long-term renters for your [market_city] investment property. As a landlord, your goal is to find someone who will want to stay in the house for a long time and who will also be respectful of your property, treating it as if it were their own. With the right additions and upgrades, you will be able to rent out your house right away!

Step 4 – Refinance

The next step in the process is to refinance the property. This can cost you a little money, but the rewards are definitely worth it. The goal is to take all of the money you pull from the house after you refinance it, and put it toward your next [market_city] real estate investment. This is how the cycle really begins and how you can rapidly turn one investment into a portfolio of excellent properties.

Step 5 – Repeat

Now, you do it all over again. This is how investors all over the country have started their investing careers. Once they complete their first one, things start to get easier, because things make more sense. You will have a better understanding when looking at properties of which one will work the best for you and your investing goals. Once you have done a few, you’ll see how easy it can be to invest in Kansas City real estate and you’ll wish you would have started sooner.

If you are you ready to invest in the Kansas City market, find out how our team can help We help new investors, as well as seasoned professionals, find the perfect properties to add to their portfolios. We are happy to answer any questions you have about investing in Kansas City real estate.

This is one of the best times to start buying investment real estate in Kansas City using the BRRRR method. Reach out to us today to find out how we can help! 913-708-1185

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