Sometimes you have to hustle harder than ever just to stay survive in this business. I’ve had those sleepless nights, tough clients, and deals that felt like they could fall apart any second. When things get tight, creativity becomes your most valuable tool.
Lately, I’ve been leaning heavily on the BRRRR method to keep my pipeline moving and my capital cycling. With today’s interest rates and lending environment, it’s a whole new ballgame, and BRRRR has helped me stay competitive.
For those who might be unfamiliar to BRRRR method it stands for:
(Buy, Rehab, Rent, Refinance, Repeat).
The goal is to buy undervalued properties, improve them, rent them out for cash flow, refinance to pull out your equity, and reinvest into the next deal.
It’s one of the smartest ways I’ve found to scale without constantly needing new capital, and it’s a real lifeline when inventory is tight.
Anyone else using BRRRR right now or adjusting your strategy due to rates and lending shifts? Let’s swap notes on what’s working in today’s market.
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BRRRR has been a lifeline for me too, especially in this high-rate, low-inventory market.
I’ve found that being extra sharp on the “Rehab” phase is key right now, focusing on improvements that boost appraised value and attract solid long-term tenants. Also been working closely with local lenders who understand BRRRR and are flexible on seasoning timelines makes a huge difference when trying to refi quickly.
Curious how others are handling the refi stage with current rates, holding longer or just building in more margin upfront?
Appreciate you sharing.
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BRRRR is still working for me, but I’ve had to get creative with financing using private money and even partnering up to split risk. The key is buying way below market and focusing on neighborhoods with strong rent demand. I’ve also started self-managing to boost cash flow.
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Honestly, I’m a little nervous about jumping into BRRRR right now. With rates where they are, my cash-out refi numbers just don’t pencil out unless I get a killer deal. Plus, rehab costs are up contractors are charging a premium. Anyone finding creative ways to keep reno budgets in check? Or is it smarter to wait for rates to drop?
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Still using BRRRR but it’s tougher now, refi appraisals aren’t hitting like they did in 2021. I’ve started holding longer before the refi to build more equity.
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rehab quality and lender flexibility are everything right now.
teaming up to reduce risk and self-managing to boost cash flow is a strong combo, especially with today’s lending challenges.
With rates and reno costs both up, I’ve seen some ppl shift to smaller rehabs or focus on turnkey properties that just need light updates.
Same here, those 2021 appraisals feel like a distant memory. Holding longer to let equity build has definitely helped balance things out.
BRRRR still works but the margins are tighter. The key for me has been finding true off-market deals with big upside.
