Anyone still closing BRRRRs with less than 20% in?

Question

Curious what people are seeing in terms of leverage on BRRRR acquisitions — especially when using short-term funds before a DSCR refi. Has anyone successfully acquired, rehabbed, and refi’d a deal with less than 20% of their own cash in? Not trying to over-leverage, just exploring what's still realistic in 2025.

Sasha Mohammed · Answer

Mortgage broker here, I to do a ton of these loans. 10% down for rehab is totally do-able for acquisition, PLUS lender will lend up to 100% of reno. The reno part is in the form of a draw, so you would need some liquidity to get the project started, but yes, sub-20% initial capital investment is do-able. Most will cash-out refi to 75% of the new value once the project is done using DSCR lending and often can pull out their initial investment as well.

John O'Leary · Answer

@Kyle O'Brien I still come across these regularly in more affordable markets. I’ve seen plenty of successful BRRRR deals where investors are able to pull all their capital back out—particularly in states like Ohio, West Virginia, Alabama, and even certain pockets of North Carolina.

Erik Estrada · Answer

It is possible but you need to buy at the right price and specifically in a competitive market like CA.

JonPaul Kessinger · Answer

That I am unsure of, they are a small local bank, they may, on a case by case basis, depending on the deal and your proof of income ect.

Greg Parker · Answer

We can hit those numbers on maybe 1 out of 5.  But usually we have to leave a little money in the deal.

https://www.biggerpockets.com/markets?market=Montgomery%2C%2...

Gabriel Watts · Answer

Most hard money lenders are only going to be 10% out of pocket if the deal is right. still very realistic in 2025. but it comes down to the deal. they usually care more about the LTV of the ARV vs purchase price and down payment

Eliyahou Gronstein · Answer

Im in NJ I've closed a bunch of houses that I brrr  between this year and last year dont really cash flow dscr is about 1-1.1 so the rates are higher

Mike Klarman · Answer

If you are buying on market, using financing, even if you can get 90/100, you will be in for 20%+ after all costs.  There's all kinds of hidden/unforeseen costs during the process.

Omar Ciam · Answer

Does this bank also lend 100% for foreigners?

JonPaul Kessinger · Answer

I am in West Virginia, and we are cash flowing here. The equity growth is not as fast, depending on the market, of course. I manage several properties for others and also invest myself. I have used a local bank that will finance 100% of the purchase if you buy it at 80% LTV. Their appraisal process is very basic, and they primarily care if it will cash flow.

Anyone still closing BRRRRs with less than 20% in?

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