What You Need to Know About Building Wealth with the BRRRR Method in St. George

Building wealth and creating financial freedom doesn't have to be as complicated as you think. With the right strategy, you can slowly but surely generate passive income through growing your real estate portfolio in St. George. With the BRRRR method, you'll be able to follow simple steps to work toward this goal. Here's how it works. 

What is the BRRRR Method?

The BRRRR method is a real estate investment strategy based on an acronym: buy, rehab, rent, refinance, repeat. It is a tried and true method that has allowed many investors to steadily build a profitable portfolio without coming up with cash over and over. 

If you're looking to grow a rental portfolio in St. George, this strategy could be the key to generating passive income while maximizing your investment potential. Let's walk through the 5 steps.

1. Buy the Right Property

The first step is buying your first rental property, and the key here is finding a property that aligns with your investing method. Knowing that the plan is to renovate to rapidly boost the value of the home (and therefore the equity you can leverage for your next property), you need a place that is ready for updating, priced competitively, but not an overwhelming project that becomes a money pit. 

Ideally, you'll find an undervalued or distressed property that can be purchased below market value. St. George’s real estate market is competitive, but off-market deals, fixer-uppers, and motivated sellers present great opportunities for investors, and we can help you find a property that works with your budget and plans for the future. 

Make sure that you're paying attention to location, as well. The home should be in a desirable neighborhood with high rental demand to ensure that it will be easy to rent out. Older homes in established neighborhoods that need updates can be a great option, as well.

2. Rehab for Maximum Value

After you buy your project property, it's time to rehab before finding your renters. Take care to prioritize renovations that will boost both the rental appeal, and the appraised value of the home. This is similar to renovating when you are flipping a house, but unlike flipping—where the goal is to sell—BRRRR investors renovate with long-term rental income in mind.

Depending on the property, you may have a unique list of renovations to prioritize, but you might start with these:

• Energy-efficient upgrades (HVAC, insulation, windows) to appeal to eco-conscious tenants
• Desert-friendly landscaping to reduce maintenance costs
• Updated kitchens and bathrooms to increase rental value
• Adding a casita or ADU (Accessory Dwelling Unit) for additional income

3. Rent to Reliable Tenants

When the renovations are complete, it's time to find renters. Be careful to vet your tenants carefully, considering the help of a property management company who can screen applications for you. St. George attracts a diverse pool of renters, from young professionals and retirees to college students and seasonal visitors, so this is a great palce to quickly find renters to fill the property. 

4. Refinance to Pull Out Equity

After you've followed these steps, you're ready to refinance knowing that you can access the equity you've built in the property while leaning on your tenants to continue funding the mortgage. This is the step that allows you to recover your initial investment and use that money to purchase your next property.

You can talk with a lender to determine exactly which financing will be best for you. Many investors find that a cash out refinance is a simple way to move on to the next project with cash in hand. 

5. Repeat the Process to Scale Your Portfolio

With cash in hand from the home's equity, you're ready to repeat the entire process and continue to build your real estate portfolio. The more times you do this, the larger your rental portfolio becomes—without needing massive amounts of upfront capital.

BRRRR is a great strategy in St. George for a few reasons:

• Steady appreciation – Home values continue to rise, increasing your equity
• High rental demand – A strong market ensures stable cash flow
• Tax benefits – Depreciation and deductions help offset rental income
• Diverse opportunities – Single-family homes, townhomes, and vacation rentals all perform well

As Erika Rogers says, "The BRRRR method requires smart deal analysis, patience, and a long-term mindset, but it’s one of the most powerful ways to build generational wealth through real estate."

Ready to learn more about real estate in St. George? Whether you want to buy a personal home or invest in income properties, we can help, so contact us any time to get started.