BRRRR Investing 101: Pros & Cons

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So you’re looking into real estate investment and you’ve come across the term BRRRR investing. You’ve heard that you can make serious money quickly with the BRRRR method. But what exactly is it?

First, you need to know what the BRRRR acronym stands for:

  • Buy

    The first step is to get a great deal on a property. For the BRRRR strategy to work for you, you have to have a great eye for properties with excellent potential. This means that, for starters, the property you’re eyeing should be low cost but be in an excellent neighborhood, have a solid foundation, and only need cosmetic or other minimal repairs.

  • Rehab

    To make your purchase profitable, you have to make it livable. Rehabbing is all about making sure that the house you just bought is fully functional and that any changes you make will raise its value. When fixing up the house, you need to make wise decisions financially. You want changes that will look great but won’t cost a lot. After all, you’re going to be selling the property again in the future and will likely have to make additional renovations before selling.

  • Rent

    The next step is to rent out the property to great tenants. You can hire a property manager, or if you’re feeling confident, you can take care of this process yourself.

  • Refinance

    Now’s the time to recoup your investment. Make sure to let your tenants know once you’ve made your decision to refinance. This is so they’ll have enough time to move out and you can fix up the house again so you can get a conventional (low-interest, fixed) mortgage that amounts to about 70% of the original property value. This is what you’re going to use for the next step of our strategy.

  • Repeat

    Now that you’ve made a profitable investment, it’s time to repeat the process all over again! Your long-term goal with this strategy is to have multiple properties that provide you with positive cash flow.

The BRRRR strategy is an excellent way to invest in rental properties when you don’t have a huge capital because you’re going to be buying a low-cost but high-potential property and then boosting its rental value through renovations. This ensures that you to get a good Return on Investment and allows you to refinance and repeat the process all over again.

Now that you’re familiar with what the BRRRR method is, it’s time to look at the pros and cons.


  • Great Tenants - Because you’re rehabbing your property and making it really attractive to tenants, you can take your pick of the best tenants.

  • Excellent ROI - Your initial out-of-pocket investment is low, you’re going to have a continuous cash flow times infinity depending on how many rental properties you get.

  • High Equity - You don’t just own a rental property with the same value that you paid for, you buy a low-cost property, spend some money, and end up getting 20%-30% equity per investment.


  • Risk, risk, risk - BRRRR investing can be risky. During rehabilitation, you might go through some unforeseen risks like major repairs that were not discovered during your appraisal. There’s also the appraisal risk. What if the home doesn’t appraise enough after the rehab to secure refinancing?

  • Expensive short-term loan - The initial short-term loan you get can be very expensive. Plus, the refinancing bank might require a “seasoning” period of six to 12 months after the purchase before refinancing.

BRRRR investing is viable and profitable, but you need to make the right decisions for it to work its magic.

Want to know if BRRRR is right for you? I’d love to help you out. Schedule a consultation now and let’s talk!

Color Your World: Tips When Repainting

Color Your World: Tips When Repainting |

Painting your walls, ceilings, and cabinets with a fresh coat of color is one of the most practical ways to spruce up your property. It’s easy, it’s cheap, and it boosts your property’s value and aesthetics.

But before you go on choosing a random color and painting the walls yourself, you need to know the basics of painting first.

Choosing the Colors

There are so many colors and shades and hues out there which makes it incredibly difficult to settle on that one perfect color that will grace your walls for a long time. To help you out, here are some basic colors and the emotions they convey:

  • White is very modern and timeless, so it’s great to incorporate white in every room. You can never go wrong with choosing white or super light colors on huge expanses of wall.

  • Black can make a room look heavy and small, so use black or really dark colors sparingly. They’re great for highlighting certain areas or as accent colors.

  • Red and Yellow are very warm, vibrant, energetic colors, so they’re great for spicing up a boring room! If you want to unleash passion and creativity in a specific area of your house, pick a red hue.

  • Blue is quite calming so it’s a great color for quieter areas like bedrooms. On the other hand, bright shades of blue can also be used on feature walls.

  • Green and Blue are very easy on the eyes, so shades of green and blue are great for rooms where your eyes often get strained such as home offices or entertainment rooms. They can stimulate thought too.

Brown is a more mellow alternative to red and yellow if you want a warm, earthy, and cozy vibe.

Picking Out Paint

It’s not just about the colors. There are different types of paint for various purposes, so make sure you’ve got the right one for the job.

Most paints are categorized depending on the surface they were made for. There are paints suitable only for wood, paints for wood and metal, paints for stone or cement, and so on and so forth.

There are also specialty paints with specific properties that were made to suit specific types of rooms. For instance, specialty paints made for bathrooms and other rooms that tend to get wet or steamy will have anti-mold properties. Paints for high-traffic areas will be easier to clean or wipe down.

Another thing that you need to know about types of paint is that there are odor-free paints, eco-friendly paints, low-VOC paints and so on. These classifications will tell you what materials are present in the paint you’re buying and how good they are for the environment.

Doing the Painting Yourself

For many people, it all stops with choosing a color. But if you’re feeling adventurous or if you want to save a couple of bucks on labor, you might want to try your hand at doing the painting yourself!

Painting is one of most DIY-ed remodelling jobs at home, because it’s not as dangerous or difficult as other tasks. In fact, it can be a lot of fun! However, you shouldn’t just wing it. There are still a couple of things that could go wrong with DIY painting, and you might end up paying more for a professional repainting if you mess up.

If you want your painting job to last and look good though, you need to be aware of a few painting pointers first. Here’s what you need to know about painting your own property.

Choose quality materials.

Think all paint brushes and paint rollers are made equal? Think again. Poor quality paint brushes don’t hold their shape well, so you’ll end up with a streaky paint job when you use them. Cheap rollers made with bad fabric don’t pick up paint easily, plus pieces of the fuzz tend to fall off and stick to your paint leaving you with a lumpy wall. Invest in quality materials for a quality paint job.

Prep, prep, prep.

Any professional painter will tell you that a big part of a good paint job relies on the prep work. You need to fill in the gaps, sand the surface smooth, clean it all up, and prime your surface sufficiently to ensure that the paint sticks nicely and that the painted surface is evenly coated.

Do your research.

If you’ve never painted before, it’s important to do your due diligence and research as much as you can. Watch painting videos, read tips from the pros, ask for tips or help from people you know, and so on.

Happy painting!

Finding a Moving Company? Here are Some Tips

Finding a Moving Company? Here are Some Tips |

Congratulations! You’ve closed the deal, signed all the documents, and are ready to move into your new home. You’re looking at moving companies and have found a few that you’re considering, but how can you decide which one is best?

When deciding on a moving company, it’s very important to consider all the details. After all, you’re entrusting them with your precious items. You want a moving company that charges fair prices and works efficiently so that you don’t have to pay for too many movers or too many hours.

Here are some tips that can help you find the best moving company.

  • Make sure that the mover is registered and insured.

    Luckily, the Federal Motor Carrier Safety Administration, or FMCSA, has handy tool you can use to look up whether your mover is registered with the Federal government or not. Check out the Mover Registration Search tool here.

  • Get a written estimate.

    A written estimate is essential because it’s proof of an agreement between you and the buyer regarding the cost of your move. The estimate should be based on an on-site inspection too.

  • Don’t give in to upfront demands for payment.

    A moving company that demands cash or a large deposit before the move is a red flag for moving fraud. Avoid these companies at all cost.

  • Check out “Your Rights and Responsibilities When You Move”

    This is a booklet from the Federal government that informs you of several guidelines when you move. If you’re moving interstate, your moving company is required to give you a copy of this.

  • Do your research.

    With the Internet, it’s so much easier now to do a background check on moving companies. Check out their reputation online and see if you can find any reviews from previous customers. Watch out for their complaint history as well.

  • Don’t sign blank or incomplete documents.

    It’s easy for fraudulent movers to change or add bogus details to your documents once you have signed blank or incomplete ones, so always make sure that you’re signing complete documents. Also, remember to get copies of everything you sign.

  • Check out the moving company’s physical office or warehouse.

    It’s a mark of a good and reliable mover if they keep a clean warehouse, a welcoming physical office, and a well-kept fleet of trucks. Their trucks should also carry their branding and not be generic rental trucks.

Looking for more tips on how to avoid moving fraud and make sure that moving day goes smoothly? The U.S. Department of Transportation has created a page filled with helpful resources all about how to Protect Your Move.

Home Selling Mistakes You Need to Avoid

Home Selling Mistakes You Need to Avoid |

Selling a home might not be as scary as buying one, but there are still a few things that could go wrong when you’re putting up your property for sale.

Your home is probably one of your largest assets, so it’s only right to want to get the highest price for it. One of the most important things to remember when it comes to selling a home is to work with an agent that you trust completely. Your realtor will represent you in most aspects of the transaction, so you want someone who is honest, efficient, reliable, and highly knowledgeable. They have to be excellent communicators — someone who really listens and understands you and can be pretty persuasive as well.

Once you find the perfect real estate agent, you need to look out for any home-selling pitfalls next. Here are 5 home selling mistakes that you need to avoid.

  1. Overpricing your property

    Sure, you want to sell your property at the best price, but pricing it too high can actually do more harm than good. You might think that your home is truly worth such a high amount, but you might be a bit biased. If you’re intentionally overpricing to cover the cost of negotiations and the cost of your agent, then you might want to reconsider too.

    Putting such a high value on your home from the onset can ward off strong potential buyers, especially if the list price of your home doesn’t match the price range of surrounding properties or the historical value of homes in the area.

  2. Trying to sell the house yourself

    Think you can save by selling the house yourself? Think again. A highly qualified and experienced agent can actually raise your asking price and help you sell the home much faster. They can also save you time because they already know the process like the back of their hands. On top of that, your agent will provide you with plenty of useful insights to make the home-selling process so much easier.

  3. Failing to properly prepare your home

    Not cleaning your home? Failure to do the necessary repairs? These overlooked mistakes can cost you a strong buyer or two. Make sure that your home is prepped and primed and looking its best before you put it on the market.

  4. Not looking at the competition

    Selling a house is pretty similar to selling any other product on the market. That is, you have to do competitor research. As much as you want to sell your house at your own price, it’s still important to look at what else is on the market.

  5. Not being open to negotiations

    Negotiation is a HUGE part of the home buying and selling process, so always be open to it. Buyers are looking to get the best bang for their buck and you’re looking to sell at the highest possible price. There’s a happy middle ground that you both can agree on, and this will only happen if you negotiate.

Still nervous to sell? Feel free to ask me for assistance! Book a free consultation with me today, and I’ll be glad to help you out.

DIY or Contractor: What Projects Require Professional Help

DIY or Contractor: What Projects Require Professional Help |

With so many renovation shows on air and thousands of DIY inspiration boards on Pinterest, it’s not surprising to see so many people attempting to save cash and tackle some of their remodeling projects themselves.

But is DIY really the more practical choice? Let’s break down the pros and cons of doing remodeling projects yourself.

DIY vs contractor: factors to consider

There are plenty of things to evaluate when deciding whether a DIY job is the better choice. Here are some of them:

  • Cost

    Often, the biggest reason why people choose to DIY is because they want to save some money. After all, labor is one of the most expensive parts of a renovation. However, just because you’re doing it yourself doesn’t mean it’s automatically cheaper. Sometimes, the pros can get materials for much less, so that adds to your savings. Also, the cost of salvaging a failed DIY project can be really high, so don’t attempt anything above your skill level.

  • Time, Tools, and Skill

    Do you actually have time to work on the project? If not, you’re better off calling a professional. Home renovation projects often take a lot of time to do, especially if you’re not that experienced. If you don’t have power tools, a typical half-day job might take you two days to tackle. Also, if you’re not that skilled, you’re going to be spending a lot of time figuring out how to start, so keep that in mind too.

  • Safety

    Some tasks like plumbing and electrical are simply too dangerous to do yourself. Never compromise your safety and the safety of everyone else at home just to save a few bucks. If you can’t pay for a professional to do these dangerous jobs right now, then you’re better off putting it off.

  • Permit

    If the work is something that typically requires a building permit, then it’s probably too complicated to be done without the necessary skills, training, and experience. It’s best to leave it to the pros.

Choosing what to DIY

If you’re looking for things to DIY, there are still some things that are quite safe to do yourself. These include:

  • Cosmetic changes

    Many cosmetic changes like painting, wallpapering, changing small fixtures, and so on are pretty safe to do yourself.

  • Simple tiling and flooring work

    Changing your kitchen backsplash and installing vinyl or linoleum flooring can be done by an amateur.

What should you always leave to the professionals? Jobs that require special skills and safety precautions like electrical work, plumbing, HVAC work, and structural changes should always be handled by a licensed contractor.

If you’re still unsure whether to go the DIY route or to hire a professional, the National Association of the Remodeling Industry, or NARI, made a quiz to help you decide. Answer these questions from NARI to know what’s the better option for you!

6 Reasons to Buy a Fixer-Upper

6 Reasons to Buy a Fixer-Upper |

Fixer-uppers tend to get a bad rep. Many people simply don’t want to be saddled with renovations after going through the length process of buying a house.

However, if you play your cards right, a fixer-upper just might be the perfect opportunity for you to get your dream home in your dream neighborhood and with more space to spare. Interested? Here are 6 reasons to buy a fixer-upper.

Let’s start with the most obvious reason.

  1. A fixer-upper costs cheaper.

    If a home needs some work done, it will definitely be listed at much lower than market price. Any money you save on the cost of the house can go into other expenses including renovations.

  2. You can get a bigger house.

    You can get more space at a lower price if you buy a fixer-upper. And then you can renovate little by little until you realize your dream home. This is perfect if you don’t have the funds to spend on a big property upfront.

  3. You get a clean slate.

    This is the perfect time for you to put on your decorating hat and customize your home to your heart’s content. With a fixer-upper, you call all the shots. You get to decide where everything goes, what colors to use, and so on. You don’t have to settle for any part of the house you don’t like.

  4. Get into your dream neighborhood.

    A fixer-upper gets you into your dream neighborhood more easily. If you want to live in a pricey neighborhood but don’t have the cash to spend on a brand new home, a fixer-upper is the way to go. A great location adds value to your home as well, so once you renovate, your home’s value will soar.

  5. You can get quicker equity.

    If you can renovate your home as soon as you buy it, its value will increase quickly. Aside from raising your net worth and the value of the house, this also allows you to refinance sooner rather than later and get a great return on investment.

  6. You can get a 203k loan for renovations.

    The Federal Housing Administration’s 203k loans gives owners an affordable way to purchase a home and renovate it immediately. This means you don’t have to dip into your own cash reserves in order to renovate as soon as possible.

Convinced that a fixer upper is just the right choice for you? Don’t make your decision just yet! On the next article, we’ll discuss the reasons to avoid buying a fixer-upper.

What First-Timers Need to Know About Pre-Approval

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Buying a home is big deal. Buying your first home? Very daunting.

If you want to make the buying process as smooth sailing as possible, it’s very important to prioritize getting pre-approved for mortgage.

What is pre-approval?

A mortgage pre-approval is a piece of documentation proving that a lender has examined your financial background including your income, assets, and debt and has committed to lending you a specific amount of money to buy property.

Why do you need to a pre-approval?

There are many benefits to getting pre-approved:

  1. You’ll know how much you can afford.

    You definitely don’t want to spend so much time and effort looking for homes and then when you finally found that perfect house, you find out that you can’t afford it. A pre-approval gives you the security of knowing what price range you can look into.

  2. You’ll be prepared for the other costs involved in buying a house.

    A pre-approval gives you a list of things you will need to pay on top of the house cost. This includes the title insurance and other closing fees.

  3. You’ll get a competitive advantage over other buyers.

    If you’re looking for property in a lucrative market, a mortgage pre-approval can really spell the difference between getting your dream home or losing it to a more “qualified” buyer. A pre-approval signals the home seller that you’re a solid candidate.

Preparing to get pre-approved

Now that you know why you need to get pre-approved, it’s time for you to learn what a mortgage pre-approval requires.

Getting pre-approved requires a lot of paperwork. Your lender will ask you to provide them with several documents so that they can make sure you’re qualified for a loan and so they can give a fair assessment of how much they’re willing to let you borrow.

Here are some of the documents you need to prepare:

  • Proof of identity (e.g. Driver’s License or Passport)

  • Proof of employment

  • Social security numbers

  • 2 months of recent bank and asset statements

  • 2 years of federal tax returns

  • 2 years W2’s

  • Recent paystubs (30 days to 2 months)

What else do you need to know?

Although getting pre-approved is a straightforward process, it can be very exhausting. Aside from making sure that you’re in good financial standing, you will need to prepare a lot of requirements to get through the entire process. This is why you need to hire a reliable real estate agent. A good realtor can make the process easier by guiding through every step.