New BiggerPockets Article: Will Coronavirus Kill the BRRRR Method?

My most recent article for BiggerPockets picks up on the same theme as my last one; namely that cash reserves are essential for any business and particularly for real estate investors. 

This one asks a question I've seen stated as an assertion in several places: Will the Coronavirus kill the BRRRR method? (For those who don't remember, the BRRRR Method is the Buy, Rehab, Rent, Refinance, Repeat method of real estate investment. )

The answer is no. That being said, it's a little more complicated than that as some have taken the BRRRR method to mean simply buying as much as possible and overleveraging as much as possible. As I note in the article,

Overleveraging is not part of the BRRRR strategy and never has been. Yes, plenty of investors have overleveraged before and many who have done so are likely in dire straits. Perhaps such investors thought they were doing the BRRRR method, but they were most definitely not...
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Talk of 10X growth and the like are great with many things such as productivity and efficiency, but it is something to be cautious with in regard to business growth. Quick growth often follows the 'house of cards' model where a gust of wind (such as coronavirus) will knock it down. Rapid growth rarely comes with the systems necessary to sustain such growth and also often comes with way too much debt.

Check it out!