Does the BRRRR Strategy Make Sense in July 2022 with Increased Interest Rate? - Market Tuesday EP_16

Does the BRRRR Strategy Make Sense in July 2022 with Increased Interest Rate? - Market Tuesday EP_16

The answer to this question is "Maybe" 

In the end it always comes down to the math, yes the interest rates are higher and therefore the payments may be higher as well. The cost to purchase the investment property will most likely be lower, so the real question is can you get the property low enough to make the math work out? In some circumstances you can still get a deal to make it work. 

There may be a lower profit margin while the rates are still high and you would have to be ok with that. The one thing that you have to keep in mind is that it's possible for the interest to drop again in the future, if that's the case you can always refinance for the lower rate later.