(How Chad McMoneybags Used BRRRR to Cash Out His Investment and Build an STR Empire—And How You Can Too)
Introduction: A Legal Cheat Code (But Not Quite Free Money)
What if I told you there’s a way to buy vacation rentals, fix them up, rent them out, and get all your money back—so you can do it again and again? Sounds like something out of a video game, right?
Well, let’s be clear: this isn’t free money. You’ll need some cash up front to make the deal happen—but the goal is to structure it in a way that you pull all of that money back out at refinance. Done right, you’ll own a cash-flowing short-term rental (STR) without having long-term capital stuck in the deal.
Today, I’m going to tell you the legend of Chad McMoneybags (names changed to protect the innocent, of course). Chad pulled off this exact strategy, buying his first STR in the Texas Hill Country, using a mix of financing strategies, sweat equity, and a well-placed hot tub.
Oh, and of course, I was his broker, helping him find the right property—because, let’s be honest, not every deal works for this strategy.
Let’s get into it.
How Chad Found the Deal (with a Little Help from Yours Truly)
Chad wasn’t new to real estate, but STRs? That was uncharted territory.
He came to me, saying, “Ed, I want a short-term rental that makes serious money, but I don’t want my cash tied up in it forever. Also, I like lake views.”
Fair enough.
After digging through listings, running rental projections, and avoiding HOA traps, we found it:
🏚 An outdated 3-bed, 2-bath lake house in Spicewood, TX
📉 Priced below market because the owner didn’t want to deal with updates
📍 Near Lake Travis with strong STR demand
It was perfect—because once it was fixed up, it would appraise way higher than the purchase price.
That meant when Chad refinanced, he’d be able to pull out every dollar he put in.
The Money Plan: How Chad Used Other People’s Cash to Fund the Deal
Now, Chad had some cash, but not enough to drop hundreds of thousands into an STR investment. So we got creative:
- For the Purchase: He secured a hard money loan, covering 90% of the price.
- For the Down Payment & Renovation: He found a private lender (his uncle, who wanted in on STR investing but didn’t want to do the work).
Translation? Chad put some money into the deal, but the goal was to cash it all back out later.
The Rehab: How Chad Turned a Basic Lake House into an Airbnb Cash Cow
This wasn’t a full-blown remodel—just smart, STR-friendly upgrades.
- Updated the kitchen and bathrooms (no gut job, just fresh finishes).
- New floors and fresh paint (because 90s carpet is a deal killer).
- A hot tub with lake views (because Texans love a good soak).
- Outdoor string lights and a fire pit (because Airbnb guests will pay extra for vibes).
Total renovation cost? $40,000.
The Big Payoff: How Chad Cashed Out & Kept the Property
Now came the moment of truth: refinancing.
Since the house was now a highly profitable STR, the bank saw it as an income-producing asset rather than just a standard rental.
💰 New Appraisal: $550,000
💰 Loan Amount: Enough to cash out all his original investment
💰 Leftover Cash Flow: Still making $8,000/month on Airbnb
Chad pulled every dollar he put in back out—and then used that money to buy his next STR.
The Infinite Money Glitch (That Isn’t Really a Glitch)
Was it truly free money? No. Chad needed cash up front to get the deal done.
But once the property was renovated, stabilized, and refinanced the right way, he got every cent back—meaning he could keep repeating the process without using new capital.
Now Chad owns multiple STRs, all funded by the same original investment.
Can You Pull This Off? (With the Right Deal, Yes.)
Look, not every property works for this strategy. You need:
✅ A broker who understands STRs (cough, hi, that’s me)
✅ A property that will appraise higher post-renovation
✅ Financing options that don’t eat all your profits
✅ An STR market that actually makes money
If you want to see if this play works for you, let’s talk. I help investors find the right deals, run the numbers, and make sure they’re not walking into a bad investment.
Because this money glitch only works if you do it right.