How to Go Broke Using the BRRRR Strategy

In this special two hour and 13 minute class recording, James discusses how to go broke using the Buy, Rehab, Rent, Refi and Repeat (BRRRR) real estate investing strategy. Brian also gives a brief update on COVID-19.

Topics covered include:

  • COVID-19 update by Brian, including charts showing the decline in the number of showings
  • BRRRR “gotchas”
  • The Past Does Not Equal The Future
  • Home price and rent appreciation summary across 552 real estate markets
  • Inflation from 1914–2019 and 2010–2018 (the period of our market study)
  • Percentage of markets where price and rents appreciated greater than inflation
  • Comparison of Nomad™ Scenario versus BRRRR Scenarios
  • Specifically comparing markets with price and rent appreciation equal to inflation, 2%, 0%, -1%, and -2% per year
  • A continued discussion of COVID-19 market conditions

US Inflation 2010–2018

In the class, we discuss home price and rent appreciation rates between 2010 and 2018 in 552 major U.S. real estate markets. Then, we compare those appreciation rates to inflation to see what percentage of real estate markets beat inflation during that time period. Below is a chart of the inflation rates between 2010 and 2018 in the United States.

Average Annual US Inflation 2010–2018 chart

Classes on the BRRRR Strategy

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