Before you can dive any further you need to decide what you are going to buy. What type of real estate are you looking to jump into this process with? You typically want to look at real estate that has a lower purchase price and is in an area with a higher rent. A huge bonus is something that has long-term tenants that are consistent because this is what makes you profitable.
This is the more time-consuming of the processes depending on the state of the property you purchased. This is the step that will pay off. Renovating allows investors to increase their rental value. An increased rental value prevents vacancies and your monthly rental price.
Rent your investment. This is the 3rd step and involves marketing your property properly through specific websites like Airbnb or a property management company.
As the investor, you will work to strategize your financing for your real estate investments. This is where you generate cash flow. When you refinance you can do a short sale or fix and flip, and this help BRRR investors make money.
Repeat (or Renovate)
Lastly, you repeat this whole process all over again. Sometimes you see an investor just jump to renovating existing investment properties. At this point, you have completed your BRRR method and continue on repeat as you build your investment portfolio.
Using the BRRR method can be a great way to build your investment portfolio and earn a passive income. You can have a great return if you make wise choices. Just remember to buy, renovate, rent, refinance, and repeat. More importantly, work with an experienced and trusted agent.
For more information on building your investment portfolio through Chicago real estate, contact me.