Is BRRRR Still Worth It in 2026?
With higher interest rates, tighter margins, and more selective lenders, I've been hearing the same question from investors:
Is the BRRRR strategy still worth it in today's market?
Personally, I think the answer is yes—but only if the numbers truly work.
Today's market isn't as forgiving as it was a few years ago. You can't rely on appreciation alone to bail out a marginal deal. Success comes down to buying below market value, accurately estimating rehab costs, creating real equity through renovations, and having a solid refinance plan. Recent industry analysis points to disciplined underwriting and conservative refinance assumptions as the keys to making BRRRR work in 2026.
Some things I'm seeing successful investors focus on:
- Buying deeper discounts instead of chasing average MLS deals
- Being conservative with ARV and rehab budgets
- Prioritizing cash flow over appreciation
- Having financing lined up before closing
- Building strong relationships with contractors and lenders
I also think one of the biggest mistakes is treating the refinance as an afterthought. In today's market, the "R" can make or break the entire strategy.
I'm curious:
- Are you still actively using BRRRR in 2026?
- Has your buying criteria changed?
- Are you finding better opportunities on the MLS, through wholesalers, or direct-to-seller marketing?
- Have higher rates changed how you underwrite your deals?
I'd love to hear what's working for everyone.
For anyone interested, we've recently put together a more detailed guide covering the current BRRRR landscape, common mistakes, financing considerations, and strategies that investors are using in today's market:
- J Castro
