Buy, Rehab, Rent, Refinance, Repeat: The BRRRR Rental Property Investment Strategy Made Simple

by David Greene

This is why so many investors claim long-term buy and hold is the best way to make money in real estate investing. You make money in so many ways! You make money from the cash flow your property produces. This is taxed but it’s not taxed at the same level of your normal income (like a flip would be) as there are natural tax shelters in real estate investing (depreciation, for one). You make money from the rent increasing every year and your cash flow increasing as well. You make money from the loan being paid down every month. This is essentially your tenants paying your house off for you. You make money from your property increasing in value over time (inflation will do most of the heavy lifting for you). You make money from increasing your property’s value through a rehab (forced appreciation). You make money from buying right (paying less for a property than what it’s worth through targeting distressed sellers).