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Real estate investment has long been recognized as a lucrative venture for those seeking financial growth and passive income. However, navigating the complex world of real estate requires knowledge of effective investment strategies. One such strategy that has gained significant popularity among investors is the BRRRR method. We've broken down its core principles, and how it can help you build a successful real estate portfolio.

What is the BRRRR Method?

BRRRR stands for Buy, Rehab, Rent, Refinance, and Repeat. It allows investors to buy properties, improve their value through renovations or repairs, rent them out to generate cash flow, refinance to recover the money spent, and then repeat the process to continue to build their portfolio.

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Over the past couple of years, interest rates on home loans have been historically low and you may have heard a lot of talk about how it was a great time to refinance your home. In today’s market, with interest rates rising, you may hear less about refinancing now and more about buying now and refinance later. If you are wondering, what does it mean to refinance and how will it help me later, we are here to help! 

What is refinancing?

Simply put, refinancing is changing your current loan terms. Common goals for refinancing are to lower one's fixed interest rate to reduce your monthly mortgage payments, change the duration of the loan, switch the type of loan you have, or cash out on your home equity. Many people recently refinanced their…

Mortgage rates have been on the rise since around August of last year.

Rates, which on a 30-year fixed mortgage were at an all-time low of around 3.25% last year, are now not expected to go lower than the 4% mark anytime soon. This seemingly small hike can add hundreds, sometimes thousands, of dollars to a home buyer’s yearly payments. 

For example, for a $200,000 house at the rate of 3.25%, your monthly mortgage payment would be $870.41. For the same house at the current rate of 4.25%, the monthly payment would be $983.88. Over the course of a 30-year loan, that extra bit a month adds up to $40,000.

"Experts in the field expect that mortgage rates will remain at this plateau for now or will rise in the near future," says Christina Lane, senior mortgage…