What’s Actually Working When Structuring Flip and BRRRR Deals Today?

[Michael P McKeown]

I've been spending more time lately on deal structure than deal sourcing, and I'm curious how others are approaching this on flips and BRRRR projects.

What I’m seeing is that many deals don’t fail because the purchase price was wrong—they fail because the structure didn’t match the project. Leverage, rehab pacing, and exit assumptions need to line up with the actual risk profile of the property. A short, predictable cosmetic rehab can support higher leverage and faster capital recycling, but the same structure on a heavier value-add deal introduces unnecessary timeline and refi risk.

On the BRRRR side in particular, conservative structure seems to be outperforming aggressive underwriting. Lower initial leverage, realistic stabilization periods, and underwriting refis off in-place income rather than pro forma rents appear to be keeping projects flexible—even if it means leaving equity in the deal.

For those actively running flips or BRRRRs:
How are you deciding when to prioritize leverage versus flexibility? And what structural changes (capital stack, rehab sequencing, hold assumptions) have made the biggest difference in protecting returns in today’s market?

Interested in hearing how experienced operators are structuring deals right now.