The BRRRR (Buy, Repair, Rent, Refinance, Repeat) method is a popular real estate investment strategy that can be used to generate passive income and build long-term wealth.

Buy a Property Below Market Value

The first step in using the BRRRR method to make passive income is to find a
property that is priced below market value. Look for distressed properties,
foreclosures, or those that have been on the market for an extended period. You
can use real estate agents, wholesalers, or online platforms to find these types of
properties.

Repair the Property

After acquiring the property, the next step is to repair it. You want to focus on making necessary repairs that will increase the value of the property. This can include anything from cosmetic upgrades, such as painting or landscaping, to major renovations, such as a kitchen or bathroom remodel. You should also
ensure that the property meets all necessary safety requirements, such as smoke detectors and carbon monoxide detectors.

Rent Out the Property

Once the repairs are completed, it’s time to rent out the property. Set the rent at a price that covers your expenses, such as the mortgage, property taxes, insurance, maintenance, and management fees. You should also aim to make a profit on the rent, but ensure that the rent is competitive with other rental
properties in the area.

Refinance the Property

The next step in the BRRRR method is to refinance the property. This allows you to pull out equity and use it to invest in additional properties. Refinancing the property can also help lower your monthly mortgage payment and improve your cash flow.

Repeat the Process

Once you have refinanced the property, you can repeat the BRRRR method. Use the equity you’ve pulled out to invest in another property and repeat the process. Over time, you can build a portfolio of rental properties that generate passive income and increase your net worth.