My 2nd Rental Property Went WAY Different Than My First | BRRRR Method Rental
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The speaker shares his experience and perspective on his second burr deal, which took place in 2015. He defines the burr method, which stands for buy rehab rent refinance and scale, and explains how it works. The speaker emphasizes the importance of buying good properties at deep discounts to make the process easier and less stressful. He explains that they did a lot of work themselves to ensure they could get all their money back plus extra. The speaker also stresses the importance of cultivating relationships with real estate agents and wholesalers to continue getting good deals.
The speaker bought a small three-bedroom, one-bathroom house for $54,000 and borrowed $10,000 for the rehab, bringing the total to $64,000. The property required kitchen work, floor redoing, interior and exterior painting, and basement floor redoing. The speaker and his team did most of the work themselves, including laying vinyl sheets in the basement, which caused them to get fibers under their skin. They rented the property for $1,100 per month, which gave them a cash flow of about $400 per month after all expenses. They then took the rented and fixed-up property to a small local bank and got an 80% refinance on it, which gave them a new loan of $74,000. They were able to pay back their private lender $71,000 and had $3,000 of extra money, which was tax-free.
The speaker encourages viewers to watch his first video and the video above, where he walks through an actual property and explains the burr method in more detail. He also asks for viewers' opinions on whether he should have taken out the extra $3,000 or kept it in the deal.
The speaker shares his experience and perspective on his second burr deal, which took place in 2015.