The real estate market in Fall River, Massachusetts, is buzzing with opportunity, especially with developments like the MBTA South Coast Rail and waterfront revitalization projects driving demand.
Flip To BRRRBBR Analyzer
At Fortified Realty Group, we’re excited to introduce our Flip to BRRRBBR Analyzer, a powerful tool that builds on the traditional BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method with a unique twist—Buy Bitcoin. This approach, championed by our founder David Ferreira (@CribsBuyCoins on X), encourages investors to leverage real estate to build strategic Bitcoin reserves, aligning with the growing trend of diversifying into hard assets. In this blog, we’ll explore how this tool works, its benefits for Fall River investors, and how it can transform your investment strategy. If you would like to learn more about our BRRRBBR Analyzer or Fall River, MA rental property management services, call us today.
What Is The Flip To BRRRBBR Analyzer?
The Flip to BRRRBBR Analyzer is a hybrid tool combining our proven Flip Analyzer (link to investor toolkit) with a specialized BRRRBBR component. It’s designed to help investors evaluate properties for flipping with the intent to hold, refinance, and reinvest profits into Bitcoin or other assets. This strategy maximizes cash flow and builds wealth through both real estate and digital assets, making it ideal for Fall River’s dynamic market, where multi-family properties and commercial-residential blends are gaining traction due to local developments.
Part 1: The Flip Analyzer
The first part of the tool is identical to our Flip Analyzer, which helps you assess the viability of a property flip. You input key data like purchase price, rehab costs, holding costs, and expected after-repair value (ARV). For example, consider a six-unit building in Fall River purchased for $500,000 with $250,000 in rehab costs, totaling a $750,000 cost basis. Using a 50% hard money loan at 12% interest, you can calculate holding costs and estimate the ARV, typically between $1.1M and $1.2M in Fall River’s appreciating market. This section ensures your flip aligns with local market trends, such as increased demand near the waterfront or MBTA stations.
For a detailed guide on using the Flip Analyzer, check out our previous blog and accompanying video. (link to investor toolkit)
Part 2: The BRRRBBR Component
The BRRRBBR section takes the strategy further by focusing on holding the property, renting it out, refinancing, and reinvesting. Here’s how it works:
- Buy and Rehab: Purchase and renovate the property, as outlined in the Flip Analyzer.
- Rent: Estimate rental income based on Fall River’s market rates. For a six-unit building with two-bedroom apartments, a conservative $1,500/month per unit yields $9,000/month.
- Refinance: Work with a lender to refinance based on the property’s ARV. Key metrics include the Debt Service Coverage Ratio (DSCR), typically 1.25, and Loan-to-Value (LTV) ratio, often 70-80%. For an ARV of $1.2M at 70% LTV, you could secure an $840,000 mortgage.
- Buy Bitcoin: Use excess cash from refinancing to invest in Bitcoin or other assets. In our example, with a break-even cost of $800,750, a $39,000 cash-out could buy approximately 0.34 Bitcoin (based on current prices).
- Repeat: Repeat the process to scale your portfolio.
This tool’s Google Sheets interface allows you to input data in peach-colored cells, ensuring you don’t break formulas. It calculates DSCR, cap rate, cash-on-cash return, and potential Bitcoin investment, tailored to Fall River’s market dynamics.
Why BRRRBBR In Fall River?
Fall River’s real estate market is thriving, driven by the MBTA South Coast Rail, which enhances connectivity to Boston, and waterfront redevelopment projects attracting new residents and businesses. Multi-family properties, like the six-unit example, are in high demand, with rental rates for two-bedroom units often exceeding $1,500/month. The BRRRBBR strategy leverages these trends by allowing investors to refinance at higher property values, pull out cash tax-free (since it’s not a sale), and invest in Bitcoin, which many see as a greater hedge than real estate against inflation. Using this tool helps to make sound investments and our high level Fall River rental property management services can help to protect them.
How To Use The Flip To BRRRBBR Analyzer
- Make a Copy: Go to File > Make a Copy in Google Sheets to create an editable version.
- Input Flip Data: Enter purchase price, rehab costs, loan details, and ARV in the Flip Analyzer section.
- Enter BRRRBBR Data: Input rental income, lender requirements (DSCR, LTV, interest rate, amortization), and closing costs. For commercial properties (4+ units), expect 5-10 year loans with 20-30 year amortization.
- Analyze Results: Review DSCR, cash flow, and cash-out potential. Adjust rental rates or expenses to meet lender underwriting standards.
- Invest in Bitcoin: Use the cash-out amount to estimate Bitcoin or other asset purchases via Google Finance formulas.
If you have questions about our BRRRBBR Analyzer or Fall River rental property management services, call Fortified Realty Group LLC today