5 Mistakes I Made on My First BRRRR Project (and What I’d Do Differently)

[Irene Block]

Hey BP community. I'm Irene, a Realtor and investor based in Oceanside, CA. I am currently building my rental portfolio in Columbus, OH. I just wrapped up the rehab phase on my first BRRRR and wanted to share a few lessons I learned along the way in hopes it helps someone else getting started.

Here are 5 mistakes I made and what I would do differently next time:

1. Rushing through the planning phase
My timeline actually moved quicker than expected, which was great. But because of that, I hadn’t finalized all of my fixture selections or clearly outlined the scope of work.

What I would do differently: Be extremely specific about what is getting installed and where. Create a detailed finish schedule and clarify expectations with the contractor upfront.

2. Not having all LLC documents ready to go
I assumed my LLC structure was good to go, but I ended up needing to revise and reorganize documents midway through the process to satisfy my lender's requirements. It caused some unnecessary delays and added stress.

What I would do differently: Make sure all operating agreements, EINs, bank accounts, and signatures are complete and ready before starting the deal.

3. Not preparing for the draw process with my lender
The hard money lender I used required geo-tagged photos for each draw request. My contractor had to be on-site to take the exact photos they wanted, matching the scope of the work. If the photos didn’t line up, the lender withheld funds. It slowed things down and added unexpected out-of-pocket costs, especially since each draw had a fee.

What I would do differently: Clarify the exact draw requirements upfront, walk my GC through the process before starting, and aim to reduce the number of draws to minimize fees.

4. Not aligning scopes of work between my GC and lender
My contractor’s scope of work didn’t fully match the scope I submitted to my hard money lender. That caused issues during the draw process, especially when certain completed items didn’t line up with what the lender expected to reimburse.

What I would do differently: Cross-check both scopes before submitting anything to the lender, and make sure they are written with clear line items and matching terminology to avoid confusion or withheld funds.

5. Trusting rental projections without verifying market data

My property management company gave me a rent estimate that seemed high, but I trusted it. After listing, I’ve had to reduce the rent price three times to attract interest. This has impacted my projected cash flow and refinancing timeline.

What I would do differently: Do my own rent comp analysis early on and use conservative numbers when underwriting. Always verify any rent estimates with actual leased comps, not just what a PM says is “possible.”

What is one thing you would have done differently on your first BRRRR?

[Arman Ahmed]

@Irene Block

Hi Irene, really appreciate you sharing these lessons—they're super practical and exactly the kind of insights newer investors need. I actually work with a lot of investors building portfolios in Columbus and across the Midwest, including helping source off-market deals, analyze cash flow, and connect with contractors and property managers. If you're ever looking for a local partner or someone to collaborate with on your next BRRRR project, I'd be happy to connect and share resources