How To Use The BRRRR Method for Short-Term Rental Financing

Today’s expert guest is Jessie Lang, a buy-and-hold investor with over 70 (!) rentals in Columbus Ohio – most of which she’s acquired since 2021. She has used the BRRRR method to acquire her portfolio with little to none of her own money left in the deals. Now, she’s committed to teaching others how to do the same – and we get a great outline of it today.

Jessie walks us through the BRRRR Method, sharing the real-life math on an active project she’s working on right now to illustrate exactly how it works and why it’s been so successful for her. Of course, we also compare and contrast how this method applies to STRs, where it works and where you might need to tweak your approach.

We also go over her process for qualifying residents, because if you are even considering mid-term rentals (let alone long-term), you need to understand that you are no longer hosting guests. You are hosting residents, and specific laws kick into place that you might not be used to.

(00:01:44) #STRShareSunday: @lakearrowheadmanor

• Marketing holiday months with dialed up decor
• Tips for spotlighting key amenities on social media  

(00:05:37) Jessie Lang’s Path to 70 Rentals

• Falling into the real estate world by accident
• Austin, Texas to Columbus, Ohio
• How she added 60 doors in 3 years 

(00:10:42) BRRRR Method 101

• Buy, renovate, rent, refinance, and repeat
• Are there any left?
• Real-time example of an active BRRRR scenario
• Keeping materials and styling consistent 
• Planning for the exit

(00:16:34) Success Tips & Common Beginner Mistakes

• Get a good general contractor
• Having a team ready for when an opportunity lands
• Beware of over renovating
• Know your financing options 
• Funding the gap
• Doing the math on money movement

(00:27:18) BRRRR-bnb: Does it Work for STRs?

• Sarah’s active BRRRR projects 
• Interest rates vs. cash flow
• Accepting a long runway

(00:29:34) Effective Resident Communication Practices 

• Track everything in your operational software
• Important mindset work of late rent checks 
• Steps available prior to eviction 

(00:35:34) How to Qualify Potential Renters

• Jessie’s copy/paste application process
• Zillow applications 
• Staying within the law on fairness and access
• Digging deep on references 
• Using a manual scorecard for potential tenants  

(00:48:27) Jessie’s Long Term Plan for the Future

• Becoming a private lender 
• Unlocked Guide: Unlocked Guide
• Starting her own education platform for long-term
• Getting easier with growth

Download a transcript of this episode.

Resources:

• Visit thanksforvisiting.com/workshop to watch our Hosting Business Mastery Method workshop!
• Airbnb Essentials Checklist: hostchecklist.com
• Unlocked Guide: Unlocked Guide
• #STRShareSunday: @lakearrowheadmanor

#STRShareSunday

@lakearrowheadmanor

Today, we are sharing Lake Arrowhead Manor, a 2600 sq ft farmhouse located in Lake Arrowhead, California. This is a luxury (pet-friendly) 4-bedroom home with breathtaking views of the San Bernardino mountains. We love that they have included shots of how you can enjoy this space throughout the different seasons. You could easily find us in their hot tub or roasting marshmallows around their fire pit table. They are an Airbnb “Guest Favorite” and have twenty-one 5-star reviews. Keep crushing it, Tiffany!

• Airbnb: Lake Arrowhead Manor
• Instagram: @lakearrowheadmanor

We would love to feature YOU, so don’t forget to use #STRShareSunday to get your chance!