YFP REI 75: Market Check-In: Is BRRRR Dead?

Market Check-In: Is BRRRR Dead?

Nate Hedrick, PharmD, and David Bright, PharmD, MBA, BCACP, FAPhA, FCCP, answer the question of whether or not the BRRRR method remains a viable investment strategy for real estate investors today. 

Episode Summary

This week on the YFP Real Estate Investing Podcast, Nate Hedrick, PharmD, and David Bright, PharmD, MBA, BCACP, FAPhA, FCCP, discuss the BRRRR method and whether or not it remains a viable option for real estate investors in the current market. They share their personal experiences, market nuances of their location, and how the rapidly changing market impacts the answer to the question, “Is the BRRRR method dead?” With a shift in the real estate market as of late, more first-time home buyers have been able to get started in real estate, but the same changes have left real estate investors questioning if now is the right time to invest in additional properties. Will the BRRRR method work in this market? David and Nate break down what the BRRRR method is, and outline three questions potential investors should consider in assessing the real estate market for the viability of a BRRRR style investment. 

1. Is the BRRRR method extra risky in a market where prices may decline? 
2. As interest rates are climbing, how does that impact things with the BRRRR method?
3. Can a bad appraisal ruin a BRRRR investment?

In answering these questions, Nate and David remind listeners about the importance of multiple exit strategies, how to mitigate some of the risks of a market decline, how monthly cashflow is affected by interest rates, and what to do in the event of an unfair or unexpected appraisal value on an investment property. 

Links Mentioned in Today’s Episode

• Join the YFP Real Estate Investing Facebook Group
• BiggerPockets
• YFP Real Estate Concierge Service
• YFP Real Estate Investing
• Your Financial Pharmacist Disclaimer and Disclosures

Episode Transcript

[INTRO]

[00:00:08] NH: Hello and welcome to the Your Financial Pharmacist Real Estate Investing Podcast, a show all about empowering pharmacists to achieve financial freedom through real estate investing. I’m Nate Hedrick. And each week, my co-host, David Bright, and I explore stories from pharmacists all over the country who are achieving their real estate goals, while maintaining a meaningful career in pharmacy. Whether you’re a first-time investor or a seasoned pro, we’re here to provide education and inspiration about the world of real estate. Please note, this podcast is intended for educational purposes only and should not be considered financial or investment advice. 

[EPISODE]

[00:00:42] NH: Hey, David. How’s it going?

[00:00:44] DB: Hey. Good, thanks. How are you doing, man?

[00:00:45] NH: Good. It’d been a good week. We are finally getting a couple of real estate clients to the finish line, which is new for me for a while. It’s just been a crazy market, so it’s been a good time. Several investor clients that are actually able to buy something. I know, again, there’s many out there that are still scratching their heads, looking for the right deal and trying to figure out what’s going on. But we’re able to find a little success this past week or two, which has been good.

[00:01:07] DB: No, that’s good. I know that, yeah, the market is absolutely shifting. I think a lot of people have been kind of scratching their head over the last few months of what’s going on with interest rate spikes and all the news that’s out there. Yeah, I’m wondering, too. I’m imagining that’s causing a lot of first-time homebuyers that are excited to finally get in. There are some people that were looking for an upgrade house that are finally able to do that as inventory shifts. 

But I think for real estate investors, it’s causing some second-guessing of like, “What’s going on in the market? Is this a bad time?” Like, “What’s up?”

[00:01:38] NH: Yeah. I know, especially when we talk about you and I both really like the BRRRR method, which we’ve talked about on the show in the past. That’s Buy, Rehab, Rent, Refinance, Repeat. We’ve gotten a lot of questions recently about what’s next. Like is that strategy going to be able to work still? We wanted to talk a little bit more about that specific strategy and what that looks like. 

[00:01:58] DB: Yeah. So one of the things that people that have listened to show frequently understand is that we do these deep dives. We take these kind of common questions that come up in podcasts. They come up in the YFP Real Estate Investing Facebook group. They come up in different places, and we think this is something good to dive into for a minute because, again, like you shared, for context, that BRRRR method is that long-standing model in real estate, where you buy a property under market value, you fix it up, you refinance it to pull some, most, all of your initial investment back out, and then you rent it out as long-term buy and hold real estate investment. 

Those that listen to or follow the BiggerPockets group, they’ve coined that term, the BRRRR model, the Buy, Rent, Rehab, Refinance, Repeat, and there’s often a lot of emphasis put on that Repeat step. Because in a lot of cases, that refinance allows you to pull most, all of your initial investment back out and do it over and over again. I think that has a lot of investors really into that model because folks that are looking to scale find pretty quickly that it takes a while to save up that 25% down payment for every house. 

So if you’re looking for more than one or two houses, you either have to just let that go over time or have to have a really large income stream. Or you have to start getting creative with models like this.

[00:03:13] NH: Yeah. So if we do a really simple example, where if you’ve never heard of this before or you just wanted to walk through it again, I’ll use easy numbers, right? You can extrapolate this to basically anything. But if you take a $50,000 house, again, it may not be available in your market. But let’s just – For the sake of this discussion, you buy a $50,000 house, and you put $20,000 in repairs into it. So you’re in it for $70,000. 

Now, if you could buy a $70,000 house all done, this might not be worth the risk, right? It’s much easier sometimes to just simply buy that ready-to-go property already fixed up. But if that house is actually worth more than $70,000, specifically, if it’s worth, let’s say, $100,000, when that property is done, rented, all fixed up, ready to go, and it is worth that final value of $100,000, you know that based on comparable properties, you can then go to the bank and do what’s called a cash-out refinance, where they’re going to pay off your current balance, if you have any sort of mortgage on that property existing today, and give you a new loan. That new loan will be up to, usually, 75% or 70% of the value of that property. So we call that loan to value. 

In this case, if you have $100,000 house, they’re going to give you a $70,000 mortgage. All of a sudden, you’ve got your cash right back out of that property that you’ve invested. So it’s a great way to actually pull that money from the bank, be able to reuse it on a different property and still be able to start building your portfolio of investment properties. 

[00:04:37] DB: Yeah. Like you said, Nate, it doesn’t just work at like the $50,000 house. But in a lot of markets, you might triple that. Like $150,000 house that you put $60,000 in repairs, and hopefully then it’s worth 300,000 or – I don’t know. In Seattle, maybe you just add a zero to that. It’s a $500,000 house you put 200 into. 

That works at whatever scale, but those general figures of a lot of folks try to be 70% of the final appraised value is they’re all in figure so that if you do a cash out refinance, and you borrow 70% of that value, you theoretically get all of your investment back.

[00:05:13] NH: That might sound easy on paper, right, because that’s the general idea of BRRRR investing. But there’s a couple of big key points within that. The interest rate dramatically can affect how you’re able to refinance. The appraised value can dramatically affect how you’re able to refinance. 

So with interest rates rising today and the market doing whatever the market is going to do, I’m starting to hear people say that BRRRR is impossible now, right? The BRRRR is dead. So how can I do that? I think we wanted to discuss that, right? Do you even try now with the BRRRR method? Is it no longer a real viable option?

[00:05:47] DB: Yeah. Certainly, those are legitimate fears. You don’t want to dismiss those fears of interest rates, appraisals, all those things. There’s inevitably going to be points in different market cycles, where different investments or investing strategies don’t make sense or extra risky. So I don’t want to say that some of these responses are completely unfounded. But I think it’s probably a good idea to unpack some of those fears in a little more detail.

[00:06:11] NH: Yeah, absolutely. We really wanted to try to hit a few quick questions about how the state of the market today is impacting BRRRR investing so that you can make an informed decision about when it might be the right strategy and when you might want to try something else.

[00:06:24] DB: Yeah. So I’ll throw a couple quick disclaimers in, like we do. So we’re going to talk about what we’re seeing in the market. You and I, Nate, are both in the Midwest. So what we may be seeing kind of in the Midwest, in our regions, may be slightly different than what’s going on elsewhere, maybe a lot different than what’s going on elsewhere, and that may not apply to even a few weeks or a few months down the road. This is kind of what we’re seeing today in early fall of 2022. 

As we unpack this, though, hopefully, as we walk through just some of these considerations, in general, you can start to apply this based on whatever market season, whatever market region, so that over time, so the same kind of concepts still play through.

[00:07:03] NH: Yeah. So David and I boil it down to three questions that I think you can start to ask yourself to start assessing the market, to start assessing whether or not it makes sense to move forward. So I want to jump in with the very first one. The first question is, is the BRRRR model extra risky in a market where prices may decline? 

David, I’m going to throw that to you. Is it too risky now to do that, if we think the market might be going down? 

[00:07:26] DB: Yeah. Well, and it’s a really good question because we know that pharmacists don’t seem to love risk, right? We talk about that a lot. Pharmacists are generally risk-averse. So when the market seems wobbly, and things seem risky, it seems like this is a good time to back off. It’s just that first knee-jerk reaction, and I get that. 

But let’s start with the overall risk picture that BRRRR method in general. So when we look at how the BRRRR method works, if it’s done effectively, the BRRRR method reduces a lot of risk and mitigates a lot of risk because you’re creating equity in the process. So if you go back to that example, you buy for 50, you do $20,000 worth of work, and then you’re $70,000 all in for $100,000 house, you’re essentially buying that property at a 30% discount. 

If the market drops by 10%, you’re still buying that property at a discount. If the market drops by 20%, you’re still buying that property at a discount. That discount can be one way to mitigate the risk of, well, what if values in the market fall. If you buy $100,000 house for $100,000, and the value falls, suddenly you start getting underwater very quickly. But by buying at a discount, you’ve mitigated some of that risk, just in general. 

[00:08:41] NH: Yeah. In today’s market, particularly in some of the cities around the United States, I mean, we’ve seen tremendous price increases over the last year and a half, two years. So that type of reduction isn’t necessarily out of the question. So being prepared for that, it can be really important. If you’re not building that risk in, you might be surprised by it later. That’s when it can really hurt you.

[00:09:00] DB: Yeah. So thinking about what that may mean, it kind of brings up more questions like, “Well, what if I don’t get all of my money back out? So am I comfortable leaving 10% or more the money in the property? Or if I borrowed 100% of the acquisition and rehab costs, I absolutely must get every penny back out when I do the refinance.” So that starts to feel risky. 

But if you’re coming in with your own savings, and you’re comfortable with a BRRRR process, where maybe you’re still leaving 10% or 20% into that deal, you’re leaving a few $1,000 in that property, you’re not getting all of that back out. Then it feels less risky if you’re prepared to do that, and you’re prepared to not get all of your money back out.

[00:09:42] NH: Yeah. Especially if that cash that you’ve saved up and you’re comfortable investing for longer periods of time, if it feels like that money has been set aside for that specific purpose, it’s a little bit less risky, right? So if we go back to our example, again, $50,000 down, you got to $20,000 rehab into the house. You are hoping it’s worth 100, but you get it appraised at 90, right? So now, you’re 10,000 off your estimate. 

Well, you might only be able to pull out $63,000 of that $70,000 investment. So you’ve got about $7,000 left in the deal. For some people, that might be reasonable. For some, that might be stressful. What we’re advocating for is set yourself up so that that $7,000 is not stressful, right? It should be money that you can be okay with getting rid of and not necessarily getting back. 

David, $7,000 for me might be a lot, might be a little. What is something else that you can do to mitigate that risk, if that $7,000 is not something you want to leave into the deal?

[00:10:33] DB: Yeah. I think for those that are really trying to make sure they pull every penny back out of the deal, there still seems to be pretty significant demand for owner occupants to buy houses right now. So one other option would be at the end of that rehab process, simply sell the house, that if you’ve created that value, and you’ve created that equity, you could sell the house. 

Again, if you bought the house for 50, you put 20 into it, the market soften. Now, it’s like only worth $90,000. You could sell that house as a flip. So I think it’s good to remind everyone that those that have sold the house know this. There are some fees when you go to sell a house. So it’s not like you’re going to make a $20,000 profit there if you have 70 all in, and it’s worth 90. I like to think that for a rough estimate, maybe at the end of the project, you’re going to pay 8, 9, 10 percent in realtor fees and transfer tax and closing costs and all those things. 

So let’s just say for round numbers in this property, that’s $8,000 paid in fees off of that $90,000. Now, you net $82,000 on the sale of that house in this example, where the market drops. So again, if you’re $70,000 of all your expenses, your net is $82,000, you just made a $12,000 profit. Sure, you didn’t end up with a rental house. The goal was to try to get a long-term rental. 

But if the backup plan in this case is making $12,000 of profit, that doesn’t seem like a real terrible backup plan, if the BRRRR goes wrong. It’s one of the nice things about having multiple exit strategies in the BRRRR model that you’re not completely tied to necessarily. This has to be a rental, or I’m going to go broke.

[00:12:09] NH: Yeah. You hit it right on the head, David. The multiple exit strategy things, I know we talked about this in the past. That’s huge for us, right? If you are making a decision, you want to mitigate risk, create multiple exit strategies. If selling is an option, if renting is an option, like it opens up those possibilities so that you don’t get stuck with something that definitely loses you money or puts you in a bad situation.

[00:12:29] DB: Yeah. Again, the multiple exit strategies. I know that’s one of the things that we’ve talked about previously is that that works particularly well when you are trying to do the BRRRR method on a single-family house because a lot of owner occupants are looking for single-family houses. If you’re doing this on a duplex of four units, something like that, that might be a little tougher to find an owner occupant to buy because, generally owner occupants are looking for single-family houses. 

Again, if someone’s just getting into this, that single-family house might be a really nice first step into that as a way to reduce some of that risk. Okay. So Nate, the second question we were thinking through that we kind of referenced earlier is interest rates. As interest rates are climbing, how does that impact things with the BRRRR method? 

[00:13:12] NH: Yeah. It definitely can play a role, and I’ve got a really good example of this, actually, a project that I just wrapped up. We’ve talked about this on the show in the past. But when I ran all my math, it was back in February. In fact, we put an offer on this property back in December of last year, bought it in the very beginning of February. Rates were still super low, compared to what they are now. 

Again, we were kind of rolling on this BRRRR method over and over again of we know what the rate is. We just did the math on this. Well, when we finished the rehab, and again we have to – Usually, in a lot of these BRRRR models, you have to wait a six-month seasoning period. But we also had a long rehab on this one. But when we are done, interest rates had really climbed. It totally changed the math at the end. 

So it impacted our exit strategy a lot, and we talked a lot about what we were going to do with that property, whether we’re going to sell it, rent it out, actually do the refinance or not. I mean, it was an interesting situation that we didn’t expect. 

[00:14:05] DB: Yeah. By math, from our discussions on previous podcasts, you’re really emphasizing that monthly cash flow. That’s really the biggest number that’s impacted by interest rates. Is that correct? 

[00:14:14] NH: Yeah, that’s right. So the way we bought this property is we actually bought it with a mortgage. Then the intention was to get a new mortgage, right? So we bought a mortgage, or we use a mortgage up front to buy it, used cash to do the rehab. Then the thought was to do a refinance into a new mortgage and be able to pull all that money back out. 

When we redid the math on the new refinance rates, the higher interest rate and the higher loan balance that we were going to be given was going to really increase the monthly payment, which, again, is fine, but it hurts your monthly cash flow. So I think when we looked at the original numbers, we expected like 400 or 500. I think it was 450 a month in cash flow with the existing mortgage and everything in place, where we thought we could get the rent at. 

When we were going to refinance it, because the interest rates had risen so much, I think it took off like $300 a month in cash flow, just from interest rates. Again, part of that was the loan balance was almost doubling because we got the property at a really great deal. But just both of those things combined, really, really jacked up the cash flow. So we had to kind of pivot from what we were going to do.

[00:15:19] DB: Yeah. So you’re trying to figure out then do you keep that original mortgage and leave more money in the investment and have higher cash flow? Do you minimize cash flow but get all your money back out? That can be one pivot that people need to decide is how important is it to get all of your money back out of a property. 

[00:15:35] NH: We shared this on the Facebook group, too. If you’re curious about that house, we did end up leaving the property alone. We did not refinance it. We rented it out. It’s a great property now, that the cash that we’re leaving in the deal, we’re okay with just kind of sitting down for right now, right? We’re not aggressively making any moves in this market at the moment. So we were just going to let it sit for a little bit. We can make decisions later if we want to. 

[00:15:56] DB: Yeah. Those are really unique decisions for different people with different circumstances of different investments. I know that we’ve talked where I had a property that went kind of the other direction, where I had a – The kind of unpopular option of where the monthly payment was higher than all the rent. So I was not making money on this property. I’m underwater every month on this rental. 

But in that case, it’s a very short season, where we bought this property with a tenant already in the property, the tenant was way below market rent, and the tenant said that, “I’m moving out. I only want to stay a few more months.” So we were willing to work with that kind of negative cash flow scenario for a short period of time. The tenant is going to move out. At that point, we can fix it up. At that point, we can we can increase the market rent when we have a fixed up property that we put out on the market. 

In that situation, there may be situations where maybe a little bit less cash flow is okay for a while, or maybe a little less cash flow is good for even a year or two, as someone would slowly increase rents, just kind of keeping up with market. So there can be different strategies, and I don’t want to dismiss this. I know that a lot of times, we hear out there and we read online people that have these amazing cash flow figures from their rental properties. 

Cash flow is only one of the values that you can get out of real estate investing. You’re also seeing the market appreciation, the tax benefits, the pay down of that mortgage that the tenant is making for that property. So, yes, cash flow is important and interest rates impact cash flow, and it can be dangerous to have negative cash flow for a very long period of time. But interest rates may not be the complete deal breaker that I think a lot of people think that they are when we see some of these historically, crazy low rates go to still pretty reasonable mortgage rates.

[00:17:42] NH: Yeah. Good point to emphasize too is that that crazy interest rate that we’re talking about is actually not that crazy, right? It’s still a very reasonable interest rate. We just are so used to the low interest rates that it’s easy to expect them to be low all the time, and that’s really not the reality. 

All right. I want to shift then, David, to our last question that we teased at the beginning. What about a bad appraisal? Could a bad appraisal ruin a BRRRR investment?

[00:18:05] DB: Yeah. I think that’s one more great question. I think that we should really take a step back and define bad appraisal because I hear that term all the time, right? Like, “I got messed over my appraisal. The appraiser knows what they’re doing.” I hear those kinds of things. At the same time, like that’s the appraiser’s job. So I want to just challenge for a minute that maybe it’s all bad. 

There are times when we get overly emotional in our investing, and you walk into a property, and you see all the potential this could have, and you want to fix it up, sometimes beyond what the neighborhood can support. So I’ve seen people go in and like do all new drywall, new floors on a trim, on the doors, brand new kitchen, granite, stainless, new bathroom, tile shower, like all these things that may not be appropriate for that area. 

There’s this thought that like, “Well, if I fix it up, like I will, for sure, get more than any other house in the neighborhood.” But a lot of appraisers work off of comparable sales, and they need to have a house in the area that is similar to it in order to justify that value. So if every three-bed, two-bath, 1,500 square foot home in that area, in that timeframe is sold between 100 and 125,000, then you may not find a lot of success in over improving a house and saying like, “Oh, for sure, get 160.” Even if you make the house extra fancy, if there’s nothing to compare it to, you can be in a challenging spot. 

[00:19:29] NH: Yeah. Like you said, that $160,000 number, if you don’t get that, it doesn’t mean you got a bad appraisal, right? It just means you might have gotten a fair appraisal, and that fair appraisal is lower than you wanted it. Like you said, using the term bad is probably the wrong term. We want to make sure that we use fair or unfair based on the market conditions and the comparable properties. 

[00:19:50] DB: Yeah. That’s one thing too, where I think an experienced realtor can help you with those finished decisions and can help bring some of that emotion out of it and say, “You’re probably not going to get a greater return, if you fix all this up. This is probably – Realistically, you might get kind of that 120, 125 if you really top out because that’s what the comparable sales you’re doing. 

Realtors are trained to do that very similarly to how appraisers are. So that can be one really good way to insulate yourself against those expectations that can cause you to perceive an appraisal as bad when it may, in fact, just be fair.

[00:20:25] NH: Yeah. It’s funny you mentioned that. I was actually talking with an agent in Arizona yesterday, who helps investors with their buying process, and it comes down to helping them place tenants. She will do helping with the rehab decisions and saying, “Look, this is normal for the area. Here are the people that I recommend using.” So like it’s this whole piece of let me help you get this property back on and ready on the market. 

Again, just a really good reminder why it’s important to have a really good agent. If you don’t know where to start with an agent, I’ll plug quickly our real estate concierge service. If you go to yfprealestate.com, that’s our website, you can learn more about the concierge service, which is a way that we can connect you with an investor-friendly agent wherever you’re looking to invest. 

Again, if that’s the part that’s holding you back, and you just want somebody to help you out with that, and you need a really good agent for it, completely free service available on our website, yfprealestate.com. So I wanted to make sure I plugged that while we were talking about it. 

[00:21:17] DB: Absolutely. So if we go back to those comparable sales, and we think that in this area, three-bed, two-bath house is probably going to come out somewhere in that 110,000 and 125,000-dollar range, an appraiser might be a little more conservative, particularly if you didn’t fix the house up quite as strong. They see prices softening, all that. 

So say that they come out more like 115,000, instead of the 125,000 that you were really hoping for, that can bring some risk into the equation because, like we said in our early example, it may not come out as high as you had hoped, and you may have to leave some money into the property, if you don’t get the high appraisal. Then you can’t borrow versus that high appraisal figure.

[00:21:59] NH: Yeah. Like my example, right? Leaving that extra money in the property isn’t necessarily a bad thing. I mean, my goal at some point is to pay that house off, right? Then you can sell it and use the money somewhere else. Or there’s a lot of things that you can do once that house has a little more equity built into it. That allows me to do that. 

So leaving that extra cash in the deal might be frustrating because it wasn’t exactly our plan. It still gives us other opportunities and other things that we can do with that discount because we got that property for discount. Upfront, it was worth it. Again, it’s going to pay. It’s all on the back end.

[00:22:28] DB: What I might consider is more of a problematic appraisal would be in that 110,000 to 125,000-dollar range, like what if you got an appraisal that was like 50,000 or 60,000 or 65,000 dollars, where it was like a fraction of what you were expecting, what your realtor was expecting? It’s just kind of one of those jarring catches you’re super off guard. 

On occasion, those kinds of things may happen, and lenders generally have a process by which an appraisal can be challenged. I don’t know if I’ve even ever seen one that’s been that off. But you hear these kind of urban legend of like this what if kind of thing. So if we’re going to kind of explore this and explore risk and explore these kinds of fears, just talking about that for a minute, if there is something that is truly factually inaccurate, such as like a comparative property was recently flipped, and they were comparing the end product, but with the initial purchase price or something like that. 

If you can point out those like factual discrepancies or if there was a home that was maybe in close proximity but a different school district or something that will make it not comparable. Those kinds of things you may be able to point out to an appraiser, and the appraiser may or may not reconsider that. I mean, we all miss things. Things can be corrected. If the appraiser does agree and believes that is a substantive disconnect in the value, the appraiser can change that. 

But there’s other times where the appraiser may generally use, for instance, a six-month window. If there’s a house that sold six and a half months ago, again, that may not make it bad. Sometimes, appraisers will use their discretion to include things if that’s still the closest comparable in their opinion. 

As much as investors probably get mad at me for saying it, the appraiser may be better at appraising houses than an investor. At the end of the day, the appraiser may be right in some of these instances. 

[00:24:20] NH: Yeah. I’ve definitely seen it go multiple directions. I’ve had some very low appraisals for what I thought the value was. I’ve seen some crazy high appraisals on properties that clients of mine are buying, where we’re way over the agreed upon price. Just, again, sometimes it doesn’t make sense. But as long as the data is what you’re following, that’s where you should feel comfortable, right? Follow the data. Use the actual comparable properties, and you’ll be usually in a pretty good spot. There’s a lot of art to this. It’s not just a perfect science, unfortunately. But if you start with data, it makes the art a little bit easier to follow.

[00:24:52] DB: Yeah, and there are some prediction issues too of oftentimes when you’re doing this and you’re pulling that data, like you mentioned, Nate, the six-month seasoning period. Oftentimes, a mortgage lender will want you to wait six months from the date of purchase to do a refinance. So you’re using data from prior to purchase. Like for your house, in your example, you are probably looking at comps in December of saying, “Well, if I fix it up to this, this is what it will be worth.” Then comps over the spring, over the early summer may have gone higher or lower. 

So there’s still some crystal ball issues of like, “Well, I think the comps will probably continue to be here.” But it’s all kind of a little more art than science in that. So having some understanding that that final appraisal may be higher or lower than your initial estimate, and that you can’t guarantee that at the date of purchase, I mean, that’s pretty reasonable and to think through that that risk does exist.

[00:25:45] NH: Great points, David. Again, hopefully, this helps to kind of talk a little bit more about the BRRRR method and whether or not we think it’s a viable option. Again, I think, resoundingly the answer to is the BRRRR dead is it depends on where you are and how you’re buying, right? I’ll steal a Tim Baker line for a second. It depends. 

But again, these are the questions you should be thinking about as you’re going through things. If you’ve got questions like this or you’ve got a property that you’re analyzing, I encourage you to head on over the YFP REI Facebook group. If you’ve not already joined that, we’ve got tons of pharmacists. They’re talking about real estate investing. Throw the question to the group, right? Talk to us about where you think BRRRR is at. I think it’s something we’ve been hearing a lot more of, and we’d love to continue that discussion with you guys online. So hopefully, this has been helpful, and we’ll see you next time.

[OUTRO]

[00:26:30] TU: Thanks for listening to the YFP Real Estate Investing Podcast. If you like what you heard on today’s show, please leave us a review and subscribe to the show, so you never miss an episode. If you have a question, know someone that would make a good guest, or want to connect with Nate or David, head on over to yfprealestate.com and join the growing YFP Real Estate Investing Facebook group. 

As we conclude this week’s episode of the YFP Real Estate Investing Podcast, an important reminder that the content in this podcast is provided to you for your informational purposes only and is not intended to provide and should not be relied on for investment or any other advice. Information in the podcast and corresponding materials should not be construed as a solicitation or offer to buy or sell any investment or related financial products. We urge listeners to consult with a financial advisor with respect to any investment. 

Furthermore, the information contained in our archived newsletters, blog posts, and podcasts is not updated and may not be accurate at the time you listen to it on this podcast. Opinions and analyses expressed herein are solely those of Your Financial Pharmacist, unless otherwise noted, and constitute judgments as of the dates published. Such information may contain forward-looking statements which are not intended to be guarantees of future events. Actual results could differ materially from those anticipated in the forward-looking statements. For more information, please visit yourfinancialpharmacist.com/disclaimer. 

Thank you for your support of the YFP Real Estate Investing Podcast. Have a great rest of your week. 

[END]

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