Curious what LTV most BRRRR investors prefer to make numbers work comfortably.
Do you aim for 70%? 75%? Something else?
New investors can learn a lot from your input!
Real Estate Agent · Triad North Carolina · Member since 2025 · 50 posts · 13 votes
10mo
From what I'm seeing across BRRRR deals in the Triad (Greensboro / Winston-Salem / High Point), most experienced investors target a refinance LTV in the 70–75% range.
Here’s why that band tends to work in practice:
• 70% LTV — Most conservative and most resilient.
This usually allows investors to:
– Recapture the bulk of their rehab + acquisition capital
– Maintain strong DSCR even if rates shift
– Absorb a soft appraisal without sinking the deal
Most lenders also price better in this range, which helps long-term cashflow.
• 75% LTV — The "industry standard" for BRRRR refinances.
This tends to be the sweet spot where:
– You recover enough capital to recycle into the next project
– Debt service stays manageable
– Cashflow remains positive even with today’s higher rate environment
A lot of Triad investors settle here because the rents usually support it.
• 80% LTV — Only works when the rehab is tight and the ARV is rock solid.
You can pull more cash out, but:
– DSCR compresses fast
– Cashflow can get thin
– Appraisal risk becomes much higher
Most investors only go this high on lighter rehabs or when the numbers are extremely predictable.
In short:
70% = safest,
75% = most common,
80% = possible but narrow.
Always interested to see what other markets are trending, but these are the ranges that consistently work for BRRRR investors here.
Realtor · Raleigh NC and Greensboro, NC · Member since 2019 · 393 posts · 392 votes
10mo
BRRRR investing and the LTV isn't inherently tied/based on the location. Why would you target a lower LTV if a higher one can get you a higher cash out. The point of BRRRR investing is to get the best ROI/ROE and equity position.
@Shakur Granger I completely disagree that 80% LTV only works when the rehab it tight and ARV is rock solid...value-add investing in general ONLY works when you do it right (correct budget/ARV) regardless of if its 70% or 80% LTV. If you go over budget and get a lower ARV, a 70% LTV loan isn't going to save you...on the contrary, you'd want a higher LTV to make up for your mistakes.
@Michael Santeusanio We underwrite 75% and what we are comfortable leaving in the deal + ROI/ROE target, but have done 78-80% over the last year on refi's
Real Estate Agent · Triad North Carolina · Member since 2025 · 50 posts · 13 votes
10mo
Appreciate the perspective seriously. And you’re right, different investors handle leverage differently depending on their strategy and market.
What I shared earlier was just based on what I'm actually seeing play out here in the Triad (Greensboro / Winston-Salem / High Point). A lot of BRRRR investors I talk to are sitting around that 70–75% refi range because certain pockets out here don't support 80% as comfortably with current DSCR requirements and rent ceilings. Not saying 80% can't work it definitely can when the rehab is tight, ARV is predictable, and the deal is managed well.
I think that's why these threads are useful. It's good seeing how other markets are moving and how investors adjust their LTV targets. Helps all of us sharpen our underwriting.