How to Save Taxes and Grow Your Portfolio with the BRRRR Method (2024)

Are you a real estate investor looking for a powerful and tax-efficient strategy to scale up your portfolio and income? If so, you might want to consider the BRRRR method.

The BRRRR method stands for Buy, Rehab, Rent, Refinance, and Repeat. It involves buying a property below market value, renovating it, renting it out, refinancing it with a new mortgage, and repeating the process with another property.

The BRRRR method can help you save taxes in several ways, such as:

• Deducting the depreciation of your property from your rental income
• Avoiding or deferring capital gains tax by holding your property for more than a year or using a 1031 exchange
• Maximizing your mortgage interest deduction by refinancing your property with a higher loan amount and a lower interest rate
• Lowering your property tax deduction by appealing to the tax assessor to reduce your assessed value

The BRRRR method can also help you grow your portfolio and income by:

• Increasing your cash flow and return on investment by renting out your properties and refinancing them with lower interest rates and higher loan amounts
• Using the equity from your properties to purchase more properties and repeat the process
• Diversifying your risk and exposure by investing in different markets and types of properties
• Achieving financial freedom and independence by creating a passive income stream

Thank you for reading and happy investing! 😊