Haven't done BRRRR before, how to get started?
Investor · Reseda, CA · Member since 2019 · 297 posts · 150 votes
Haven't done BRRRR before, how to get started?
Most Popular Reply
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
1yQuote from @Austin Fowler:
Quote from @Jaron Walling:
@Austin Fowler We're close to finishing a BRRRR (possible flip) deal right now. From our experience with distressed SFH houses the market has stalled.
The market is not going to "save" investors who buy wrong. There's almost no tail winds driving prices. It's been talked about in the forums and BP podcasts lately. Prices have stagnated in most markets including my neighborhood. We're not even done with the remodel and wish we paid $7k less on the buy side. The rehab went over budget, and sales transactions have slowed. Only quality properties priced correctly are selling. We're not worried about the quality, but profit for a flip has compressed. I'm bracing for that and exploring cash-out refinance options like a conventional (6 month seasoning), or DSCR.
When you niche down into neighborhoods you see the voids. The sold price for fully remodeled home vs. a dumpster fire is crazy. Distressed properties that need basically everything have way longer DOM.
Considering what's going on in this country REI is a first world problem. We're blessed to be in these conversations. Cheers.
"The sold price for fully remodeled home vs. a dumpster fire is crazy."
Crazy as in too close to each other? Which market do you work in?
Interesting. I've been BRRRR'ing for almost 15 years and basically stopped doing it as of 3 years ago, because there is almost no price difference between run down and move in ready. Instead, I am now buying properties close to turnkey and focus more on negotiating a discount and letting the market take care of the value increase - Milwaukee has seen very steady 7-8% appreciation per year for the last 10 years.
Why do I not buy run-down anymore? Because I can't get enough discount for poor condition. That is the whole basis for BRRRR. Our inventory is so tight that sellers don't have to lower their price, they can just sell to a desperate first-time home buyer, who thinks he can rehab on weekends with the help of his uncle and 10k in materials.
One of the best deals I have done was stepping in on a deal that had fallen through on financing and was also daisy-chained to a purchase, so the seller was very motivated, had a huge amount of equity and was excited that we could keep his original closing date.
A full-blown BRRRR for us typically means 50-80k in rehab cost and it is actually to spend 5k per week consistently and avoiding empty weeks with no work done by very tight planning. The problem of removing buffer time is if one trade takes a couple days longer you might loose the slot for let's say your drywall crew and then they have to push you back a couple weeks, which impacts everything else. So it's management-intensive.
Much easier to buy, maybe paint and carpet, install some extra ceiling lighting and dimmer switches (50s and 60s homes always lack lighting) and then have it rented 2 weeks later.
38 Replies
- 1yAndrew PostellPro MemberLender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
@Austin Fowler always here to help. Reach out any time.
- 1yMin ZhangBusiness MemberReal Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
That's a solid way of looking at it, Austin. BRRRR definitely makes more sense in this type of rate environment compared to paying top dollar for turnkey. It can be a grind though lining up the right contractors, managing timelines, and making sure your refi numbers actually pencil out. I've done a few myself where the plan was to flip, but it ended up being smarter to refinance and hold. Just curious, are you thinking single-family to start, or jumping right into small multis?
- Investor · Reseda, CA · Member since 2019 · 297 posts · 150 votes1y
Quote from @Min Zhang:
That's a solid way of looking at it, Austin. BRRRR definitely makes more sense in this type of rate environment compared to paying top dollar for turnkey. It can be a grind though lining up the right contractors, managing timelines, and making sure your refi numbers actually pencil out. I've done a few myself where the plan was to flip, but it ended up being smarter to refinance and hold. Just curious, are you thinking single-family to start, or jumping right into small multis?
What would you recommend? I'm not capital limited, but am time limited. Generally attracted to bigger deals.
- 1yJaron WallingPro MemberRental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
@Austin Fowler We're close to finishing a BRRRR (possible flip) deal right now. From our experience with distressed SFH houses the market has stalled.
The market is not going to "save" investors who buy wrong. There's almost no tail winds driving prices. It's been talked about in the forums and BP podcasts lately. Prices have stagnated in most markets including my neighborhood. We're not even done with the remodel and wish we paid $7k less on the buy side. The rehab went over budget, and sales transactions have slowed. Only quality properties priced correctly are selling. We're not worried about the quality, but profit for a flip has compressed. I'm bracing for that and exploring cash-out refinance options like a conventional (6 month seasoning), or DSCR.
When you niche down into neighborhoods you see the voids. The sold price for fully remodeled home vs. a dumpster fire is crazy. Distressed properties that need basically everything have way longer DOM.
Considering what's going on in this country REI is a first world problem. We're blessed to be in these conversations. Cheers.
- Investor · Reseda, CA · Member since 2019 · 297 posts · 150 votes1y
Quote from @Jaron Walling:
@Austin Fowler We're close to finishing a BRRRR (possible flip) deal right now. From our experience with distressed SFH houses the market has stalled.
The market is not going to "save" investors who buy wrong. There's almost no tail winds driving prices. It's been talked about in the forums and BP podcasts lately. Prices have stagnated in most markets including my neighborhood. We're not even done with the remodel and wish we paid $7k less on the buy side. The rehab went over budget, and sales transactions have slowed. Only quality properties priced correctly are selling. We're not worried about the quality, but profit for a flip has compressed. I'm bracing for that and exploring cash-out refinance options like a conventional (6 month seasoning), or DSCR.
When you niche down into neighborhoods you see the voids. The sold price for fully remodeled home vs. a dumpster fire is crazy. Distressed properties that need basically everything have way longer DOM.
Considering what's going on in this country REI is a first world problem. We're blessed to be in these conversations. Cheers.
"The sold price for fully remodeled home vs. a dumpster fire is crazy."
Crazy as in too close to each other? Which market do you work in?
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes1y
Quote from @Austin Fowler:
Quote from @Jaron Walling:
@Austin Fowler We're close to finishing a BRRRR (possible flip) deal right now. From our experience with distressed SFH houses the market has stalled.
The market is not going to "save" investors who buy wrong. There's almost no tail winds driving prices. It's been talked about in the forums and BP podcasts lately. Prices have stagnated in most markets including my neighborhood. We're not even done with the remodel and wish we paid $7k less on the buy side. The rehab went over budget, and sales transactions have slowed. Only quality properties priced correctly are selling. We're not worried about the quality, but profit for a flip has compressed. I'm bracing for that and exploring cash-out refinance options like a conventional (6 month seasoning), or DSCR.
When you niche down into neighborhoods you see the voids. The sold price for fully remodeled home vs. a dumpster fire is crazy. Distressed properties that need basically everything have way longer DOM.
Considering what's going on in this country REI is a first world problem. We're blessed to be in these conversations. Cheers.
"The sold price for fully remodeled home vs. a dumpster fire is crazy."
Crazy as in too close to each other? Which market do you work in?
Interesting. I've been BRRRR'ing for almost 15 years and basically stopped doing it as of 3 years ago, because there is almost no price difference between run down and move in ready. Instead, I am now buying properties close to turnkey and focus more on negotiating a discount and letting the market take care of the value increase - Milwaukee has seen very steady 7-8% appreciation per year for the last 10 years.
Why do I not buy run-down anymore? Because I can't get enough discount for poor condition. That is the whole basis for BRRRR. Our inventory is so tight that sellers don't have to lower their price, they can just sell to a desperate first-time home buyer, who thinks he can rehab on weekends with the help of his uncle and 10k in materials.
One of the best deals I have done was stepping in on a deal that had fallen through on financing and was also daisy-chained to a purchase, so the seller was very motivated, had a huge amount of equity and was excited that we could keep his original closing date.
A full-blown BRRRR for us typically means 50-80k in rehab cost and it is actually to spend 5k per week consistently and avoiding empty weeks with no work done by very tight planning. The problem of removing buffer time is if one trade takes a couple days longer you might loose the slot for let's say your drywall crew and then they have to push you back a couple weeks, which impacts everything else. So it's management-intensive.
Much easier to buy, maybe paint and carpet, install some extra ceiling lighting and dimmer switches (50s and 60s homes always lack lighting) and then have it rented 2 weeks later.
- Investor · Member since 2022 · 49 posts · 17 votes1y
Quote from @Marcus Auerbach:
Quote from @Austin Fowler:
Quote from @Jaron Walling:
@Austin Fowler We're close to finishing a BRRRR (possible flip) deal right now. From our experience with distressed SFH houses the market has stalled.
The market is not going to "save" investors who buy wrong. There's almost no tail winds driving prices. It's been talked about in the forums and BP podcasts lately. Prices have stagnated in most markets including my neighborhood. We're not even done with the remodel and wish we paid $7k less on the buy side. The rehab went over budget, and sales transactions have slowed. Only quality properties priced correctly are selling. We're not worried about the quality, but profit for a flip has compressed. I'm bracing for that and exploring cash-out refinance options like a conventional (6 month seasoning), or DSCR.
When you niche down into neighborhoods you see the voids. The sold price for fully remodeled home vs. a dumpster fire is crazy. Distressed properties that need basically everything have way longer DOM.
Considering what's going on in this country REI is a first world problem. We're blessed to be in these conversations. Cheers.
"The sold price for fully remodeled home vs. a dumpster fire is crazy."
Crazy as in too close to each other? Which market do you work in?
Interesting. I've been BRRRR'ing for almost 15 years and basically stopped doing it as of 3 years ago, because there is almost no price difference between run down and move in ready. Instead, I am now buying properties close to turnkey and focus more on negotiating a discount and letting the market take care of the value increase - Milwaukee has seen very steady 7-8% appreciation per year for the last 10 years.
Why do I not buy run-down anymore? Because I can't get enough discount for poor condition. That is the whole basis for BRRRR. Our inventory is so tight that sellers don't have to lower their price, they can just sell to a desperate first-time home buyer, who thinks he can rehab on weekends with the help of his uncle and 10k in materials.
One of the best deals I have done was stepping in on a deal that had fallen through on financing and was also daisy-chained to a purchase, so the seller was very motivated, had a huge amount of equity and was excited that we could keep his original closing date.
A full-blown BRRRR for us typically means 50-80k in rehab cost and it is actually to spend 5k per week consistently and avoiding empty weeks with no work done by very tight planning. The problem of removing buffer time is if one trade takes a couple days longer you might loose the slot for let's say your drywall crew and then they have to push you back a couple weeks, which impacts everything else. So it's management-intensive.
Much easier to buy, maybe paint and carpet, install some extra ceiling lighting and dimmer switches (50s and 60s homes always lack lighting) and then have it rented 2 weeks later.
Great response.
At what price points do you invest in Milwaukee?
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes1y
Quote from @Eyal Goren:
Quote from @Marcus Auerbach:
Quote from @Austin Fowler:
Quote from @Jaron Walling:
@Austin Fowler We're close to finishing a BRRRR (possible flip) deal right now. From our experience with distressed SFH houses the market has stalled.
The market is not going to "save" investors who buy wrong. There's almost no tail winds driving prices. It's been talked about in the forums and BP podcasts lately. Prices have stagnated in most markets including my neighborhood. We're not even done with the remodel and wish we paid $7k less on the buy side. The rehab went over budget, and sales transactions have slowed. Only quality properties priced correctly are selling. We're not worried about the quality, but profit for a flip has compressed. I'm bracing for that and exploring cash-out refinance options like a conventional (6 month seasoning), or DSCR.
When you niche down into neighborhoods you see the voids. The sold price for fully remodeled home vs. a dumpster fire is crazy. Distressed properties that need basically everything have way longer DOM.
Considering what's going on in this country REI is a first world problem. We're blessed to be in these conversations. Cheers.
"The sold price for fully remodeled home vs. a dumpster fire is crazy."
Crazy as in too close to each other? Which market do you work in?
Interesting. I've been BRRRR'ing for almost 15 years and basically stopped doing it as of 3 years ago, because there is almost no price difference between run down and move in ready. Instead, I am now buying properties close to turnkey and focus more on negotiating a discount and letting the market take care of the value increase - Milwaukee has seen very steady 7-8% appreciation per year for the last 10 years.
Why do I not buy run-down anymore? Because I can't get enough discount for poor condition. That is the whole basis for BRRRR. Our inventory is so tight that sellers don't have to lower their price, they can just sell to a desperate first-time home buyer, who thinks he can rehab on weekends with the help of his uncle and 10k in materials.
One of the best deals I have done was stepping in on a deal that had fallen through on financing and was also daisy-chained to a purchase, so the seller was very motivated, had a huge amount of equity and was excited that we could keep his original closing date.
A full-blown BRRRR for us typically means 50-80k in rehab cost and it is actually to spend 5k per week consistently and avoiding empty weeks with no work done by very tight planning. The problem of removing buffer time is if one trade takes a couple days longer you might loose the slot for let's say your drywall crew and then they have to push you back a couple weeks, which impacts everything else. So it's management-intensive.
Much easier to buy, maybe paint and carpet, install some extra ceiling lighting and dimmer switches (50s and 60s homes always lack lighting) and then have it rented 2 weeks later.
Great response.
At what price points do you invest in Milwaukee?
Above median in the suburbs, about 300k up
- 1yJaron WallingPro MemberRental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
Quote from @Austin Fowler:
Quote from @Jaron Walling:
@Austin Fowler We're close to finishing a BRRRR (possible flip) deal right now. From our experience with distressed SFH houses the market has stalled.
The market is not going to "save" investors who buy wrong. There's almost no tail winds driving prices. It's been talked about in the forums and BP podcasts lately. Prices have stagnated in most markets including my neighborhood. We're not even done with the remodel and wish we paid $7k less on the buy side. The rehab went over budget, and sales transactions have slowed. Only quality properties priced correctly are selling. We're not worried about the quality, but profit for a flip has compressed. I'm bracing for that and exploring cash-out refinance options like a conventional (6 month seasoning), or DSCR.
When you niche down into neighborhoods you see the voids. The sold price for fully remodeled home vs. a dumpster fire is crazy. Distressed properties that need basically everything have way longer DOM.
Considering what's going on in this country REI is a first world problem. We're blessed to be in these conversations. Cheers.
"The sold price for fully remodeled home vs. a dumpster fire is crazy."
Crazy as in too close to each other? Which market do you work in?
We're in Indy. I'll share a Zillow listing for a house we looked at a few months ago. The property was overpriced from the beginning. I walked around the outside and passed. It's needs a full renovation, but rents would hardly justify the investment. Could be a flip but it's very small. It's only 765 sqft. of livable space. That hurts the ARV big time.
https://www.zillow.com/homedetails/335-S-Dearborn-St-Indiana...We ended up buying a house down the street that over looks a park for $90k. It's 1050 sqft. of livable space, fenced back yard, one car garage, and full basement.
- Wholesaler · Irvington, NJ · Member since 2025 · 112 posts · 53 votes1y
Austin, you're on the right track. BRRRR is really about buying right and making sure the numbers leave room for rehab and a solid refi. Most people use hard money or private lenders to get in, then roll it into a long-term loan after the work is done. Biggest keys I've seen are keeping rehab tight and knowing ahead of time what your refi lender will want. Since you've already invested before, the learning curve won't be too bad it's just more moving parts. Happy to chat through it anytime.
- Lender · Sanford, NC · Member since 2024 · 348 posts · 116 votes1y
Austin, sounds like you've already got a strong foundation from your other investments, so you'll probably adjust to BRRRR quicker than most. Since you mentioned being time-limited, I'd say the biggest thing is making sure you've got solid systems and a reliable team lined up before you jump in. That way you're not buried in the day-to-day once you start the rehab.
From the financing side, a lot of investors use hard money or private funding for the buy and rehab, then roll into either a DSCR or conventional refinance once the property is stabilized. That transition piece is really the key, it's where you lock in long-term cash flow and get your capital back out for the next deal.
If you've got a sample deal in mind, I'd be happy to walk through some options and show you how the numbers could work on the BRRRR side.
- Real Estate Broker · Antioch, Ca. 94509 · Member since 2025 · 149 posts · 21 votes1y
Hey Austin,
You're thinking about it the right way. BRRRR can be a smart pivot in this rate environment since you're forcing value rather than just paying retail. The key is making sure your numbers work on both ends—after-repair value high enough to support a refinance, and stabilized rents that comfortably cover debt service.Biggest pitfalls I see newbies hit are underestimating rehab costs and assuming refi terms that don’t materialize. Line up a lender on the front end, confirm their seasoning and cash-out rules, and build in a buffer for both construction and timeline. A good GC and property manager are just as important as the financing.
Happy to connect and talk through the process—it’s definitely doable, but planning and execution up front make all the difference.
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes1y
I have a modified idea to this @Austin Fowler that honestly, I hope I am wrong about....
The idea:
Start reaching out to regional and spec builders.
Do so in a pitch type manner, pitching a kind of life-boat as a buyer. I'd be shocked if any engage, but it's not to get the deal now, it's about planting the seed, and making that connection.
Because the strategy is, and potential, that this winter season could get very ugly for some. Most if not all builders will still hold a healthy dose of GFC-PTSD.
If this winter season lands with a convergence of buyer collapse, finance wows, and retail sales falling (retail as in consumer shopping, thus stoking "the recession is here" fears)....... well it's not just a "correcting" stock market that will be of fear, but that will probably be happening too.
Again, I really hope I am wrong on this, I do. But things keep lining up for it.
You just may get call backs from those planted seeds. And you just may be able to get yourself into some premium inventory for as little as say 80-cents on-the-dollar, but on cost-dollar! Yes, I could see some builders happily taking such a loss for the safety and certainty of being out and not getting stuck with hot-potato. Again, GFC-PTSD.
Various builders know, and remember, assorted horror stories of so-n-so who held on, and held-on, waiting for a recovery that didn't come soon enough, wracking up more and more debts, only to get liquidated at a far worse bottom than if they'd just pulled the cord earlier when could.
I think the coming play will be more so about buying equity than physically building it.
Again, let's all hope I am oh-so-wrong......
But if I'm not.... well, I will be pulling out my rolodex and making some calls. Personally I will be looking to talk land because, honestly, I just don't have access to as deep of pockets as you do Austin. And land is cheap to hold.
I had chance to snag a build-ready remainder of a development, 20 some lot's, at $25k per. I screwed it up, got too greedy, pressed for $17.5k. The one who did get it, they made millions. I promised self I wouldn't make that mistake again.
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @James Hamling:
I have a modified idea to this @Austin Fowler that honestly, I hope I am wrong about....
The idea:
Start reaching out to regional and spec builders.
Do so in a pitch type manner, pitching a kind of life-boat as a buyer. I'd be shocked if any engage, but it's not to get the deal now, it's about planting the seed, and making that connection.
Because the strategy is, and potential, that this winter season could get very ugly for some. Most if not all builders will still hold a healthy dose of GFC-PTSD.
If this winter season lands with a convergence of buyer collapse, finance wows, and retail sales falling (retail as in consumer shopping, thus stoking "the recession is here" fears)....... well it's not just a "correcting" stock market that will be of fear, but that will probably be happening too.
Again, I really hope I am wrong on this, I do. But things keep lining up for it.
You just may get call backs from those planted seeds. And you just may be able to get yourself into some premium inventory for as little as say 80-cents on-the-dollar, but on cost-dollar! Yes, I could see some builders happily taking such a loss for the safety and certainty of being out and not getting stuck with hot-potato. Again, GFC-PTSD.
Various builders know, and remember, assorted horror stories of so-n-so who held on, and held-on, waiting for a recovery that didn't come soon enough, wracking up more and more debts, only to get liquidated at a far worse bottom than if they'd just pulled the cord earlier when could.
I think the coming play will be more so about buying equity than physically building it.
Again, let's all hope I am oh-so-wrong......
But if I'm not.... well, I will be pulling out my rolodex and making some calls. Personally I will be looking to talk land because, honestly, I just don't have access to as deep of pockets as you do Austin. And land is cheap to hold.
I had chance to snag a build-ready remainder of a development, 20 some lot's, at $25k per. I screwed it up, got too greedy, pressed for $17.5k. The one who did get it, they made millions. I promised self I wouldn't make that mistake again.
Jim this reminds me of when I was buying courthouse step property in Atlanta metro circa 2012. A 100 lot pipe farm was offered to me for 1K per lot .. shovel ready development.. I was out of bullets tried raising money I had no issue raising capital for homes but for land it was crickets investors would just say no it does not have cash flow.. LOL.. well someone got a 20 to 40X return on that deal.. I was able to buy 12 lots for 3k each held them 18 months and exited at 30k each.. So got in one deal but man was there deals to be had picking up the pieces of failed developer builders.. Your seeing a little of this now with RTR creating buying opps for their clients using their ability to market and close deals at scale.. If the market was normal builders would not need to sell to out of area folks or to investors at all.. they would all go to local owner occ buyers.
- Tulsa ok · Member since 2025 · 84 posts · 60 votes1y
This has been my strategy since 2008 when I had to switch from flipping to long term holds. I would buy major rehab properties with my open line of credit. I would fix them up and get a renter in them and then refinance the property payoff my open line and take 5 to 10k extra out and pay myself for the 3 or 4 weeks of work I did. ( not taxable income ) I built my portfolio doing this over and over to grow my cashflow enough live off of. I still use this strategy today but now I am wanting use it on an apartment complex that is poorly managed and needs updated to force appreciatio and have alot of equity built in. I dont take out extra cash to live off anymore is only difference now. It didnt have a name when I started doing it back then. 😀
- 1yStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
The concept of creating value and recycling capital through refinance has been around. It’s now easier to complete the process at a more accelerate rate with the amount of lending sources that are available to assist with the rehab process. The two pitfalls I observe:
- 1. Many equate recycling their capital and growing a unit count as success. This can often lead to acquiring in markets with poor fundamentals. In many instances the properties equity is never attainable when sold and the portfolio is built on paper equity. There are many investors who are in for a rude awakening when they sell because they will be writing checks, not collecting them. The goal is to earn a profit, not merely recycle capital, and many wrongly prioritize capital recapture over profits. For this reason, there are many who work harder rather than allow the real estate work for them.
- 2. It is easier to line up financing for the rehab portion of the process, or at minimum lower credit and underwriting requirements may exist for the hard/alternative financing options. Many do not have the credit worthiness to line up the stabilized financing and are required to continually use the expensive debt options. This is a problem especially in stagnant markets. It creates a hamster wheel effect.
- 1yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
this is what we're seeing in Pittsburgh too. just to make up numbers... if a property is listed with an ARV of $250K, and needs $50K worth of work, it's priced at... $200K. which doesn't work for an investor, obviously. so it's much tougher to find distressed inventory at distressed prices.
can you provide more detail on your strategy? i am sure i am not making as many offers as you are but trying to get that discount on something that's not as gnarly of a rehab mostly isn't working either =) are you making it work with volume, or your knowledge of the market, or both?
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Nicholas L.:
this is what we're seeing in Pittsburgh too. just to make up numbers... if a property is listed with an ARV of $250K, and needs $50K worth of work, it's priced at... $200K. which doesn't work for an investor, obviously. so it's much tougher to find distressed inventory at distressed prices.
can you provide more detail on your strategy? i am sure i am not making as many offers as you are but trying to get that discount on something that's not as gnarly of a rehab mostly isn't working either =) are you making it work with volume, or your knowledge of the market, or both?
the stress is going to be put on wholesalers.. with deals not working and the idea of ripping big middle man profits out of them and leaving the end buyer with crumbs is going to come to light this year.. So either inventory that needs full rehab sits or it needs to be repriced . I see it every day with folks running deals by me that when I do simple napkin math they dont come close to working.. But there are still deals for the very experienced bRRR or flippers.. Just not a lot of low hanging fruit as in days past.. And a lot of my clients are now sourcing their own deals and skipping the wholesalers mark ups.
- Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes1y
There's been a variation on this buy in the path strategy in the East Bay from Milpitas up to Hayward or so. Deep pocket guys buying up little tilt ups owned by small family type manufacturers....machine shops, print shops etc. Holding then selling to MF stack n packs. Prop 19 reassessment killing theese small businesses anyway if transferred to the kids. AHJ's love the increased property taxes. Way out of my wheel house. I think that strategy is already slowing down though.
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Alan F.:
There's been a variation on this buy in the path strategy in the East Bay from Milpitas up to Hayward or so. Deep pocket guys buying up little tilt ups owned by small family type manufacturers....machine shops, print shops etc. Holding then selling to MF stack n packs. Prop 19 reassessment killing theese small businesses anyway if transferred to the kids. AHJ's love the increased property taxes. Way out of my wheel house. I think that strategy is already slowing down though.
bought my first home to live in in Milpitas 1979 Shapel home 3 and 2 1600sq ft rancher for 79k :)
- Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes1y
Everyone; IMO the BRRR template was dependent on cheap leverage, lots of REI was.
Looking to the future i think senior assisted living will be a thing. Lots of boomers are sitting on big equity in the Bay Area, they will want to stay around their kids. Some will move with kids so adding bedrooms & ADU'S. I believe many will go into rei houses that get converted to assisted living. So ADA upgrades etc. Sacramento greater area seems to be growing in that realm. The challenge IMO will be the operations and liabilities.
- 1yJoe S.Pro MemberInvestor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votesLooking to the future i think senior assisted living will be a thing.
Quote from @Alan F.:
Everyone; IMO the BRRR template was dependent on cheap leverage, lots of REI was.
Looking to the future i think senior assisted living will be a thing. Lots of boomers are sitting on big equity in the Bay Area, they will want to stay around their kids. Some will move with kids so adding bedrooms & ADU'S. I believe many will go into rei houses that get converted to assisted living. So ADA upgrades etc. Sacramento greater area seems to be growing in that realm. The challenge IMO will be the operations and liabilities.
I have looked in that direction and even talked with a couple of operators … securing the capital is only part of the challenge. It is Running a business… staffing and liability is what gave me cold feet.
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Joe S.:
Looking to the future i think senior assisted living will be a thing.Quote from @Alan F.:
Everyone; IMO the BRRR template was dependent on cheap leverage, lots of REI was.
Looking to the future i think senior assisted living will be a thing. Lots of boomers are sitting on big equity in the Bay Area, they will want to stay around their kids. Some will move with kids so adding bedrooms & ADU'S. I believe many will go into rei houses that get converted to assisted living. So ADA upgrades etc. Sacramento greater area seems to be growing in that realm. The challenge IMO will be the operations and liabilities.
I have looked in that direction and even talked with a couple of operators … securing the capital is only part of the challenge. It is Running a business… staffing and liability is what gave me cold feet.
Brian Burke is making a play for this asset class and he is pretty darn Smart !!! - 1yJoe S.Pro MemberInvestor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
Quote from @Jay Hinrichs:
Quote from @Joe S.:
Looking to the future i think senior assisted living will be a thing.Quote from @Alan F.:
Everyone; IMO the BRRR template was dependent on cheap leverage, lots of REI was.
Looking to the future i think senior assisted living will be a thing. Lots of boomers are sitting on big equity in the Bay Area, they will want to stay around their kids. Some will move with kids so adding bedrooms & ADU'S. I believe many will go into rei houses that get converted to assisted living. So ADA upgrades etc. Sacramento greater area seems to be growing in that realm. The challenge IMO will be the operations and liabilities.
I have looked in that direction and even talked with a couple of operators … securing the capital is only part of the challenge. It is Running a business… staffing and liability is what gave me cold feet.
Brian Burke is making a play for this asset class and he is pretty darn Smart !!!Brian Burke is making a play for this asset class and he is pretty darn Smart !!!
Finding someone else to run it other than me and I still reap a good percentage of the return would be the challenge. I’m all ears for suggestions. :-)
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Joe S.:
Quote from @Jay Hinrichs:
Quote from @Joe S.:
Looking to the future i think senior assisted living will be a thing.Quote from @Alan F.:
Everyone; IMO the BRRR template was dependent on cheap leverage, lots of REI was.
Looking to the future i think senior assisted living will be a thing. Lots of boomers are sitting on big equity in the Bay Area, they will want to stay around their kids. Some will move with kids so adding bedrooms & ADU'S. I believe many will go into rei houses that get converted to assisted living. So ADA upgrades etc. Sacramento greater area seems to be growing in that realm. The challenge IMO will be the operations and liabilities.
I have looked in that direction and even talked with a couple of operators … securing the capital is only part of the challenge. It is Running a business… staffing and liability is what gave me cold feet.
Brian Burke is making a play for this asset class and he is pretty darn Smart !!!Brian Burke is making a play for this asset class and he is pretty darn Smart !!!
Finding someone else to run it other than me and I still reap a good percentage of the return would be the challenge. I’m all ears for suggestions. :-)
Invest in Brians syndicate let them do the heavy lifting.. :) I worked for a syndicator in the 80s and we bought 3 facilities in the SF bay area.. They had a hard time switching from MF to this asset and did not do very well with it.. But I suspect Brian will hire the right folks to make sure he understands the pain points etc and will be successful. With 100% cost seg this year might be something to look into if they are doing the cost seg.. I know I am going to take a look for some diversification this year. - Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes1y
Quote from @Jay Hinrichs:
Quote from @Joe S.:
Quote from @Jay Hinrichs:
Quote from @Joe S.:
Looking to the future i think senior assisted living will be a thing.Quote from @Alan F.:
Everyone; IMO the BRRR template was dependent on cheap leverage, lots of REI was.
Looking to the future i think senior assisted living will be a thing. Lots of boomers are sitting on big equity in the Bay Area, they will want to stay around their kids. Some will move with kids so adding bedrooms & ADU'S. I believe many will go into rei houses that get converted to assisted living. So ADA upgrades etc. Sacramento greater area seems to be growing in that realm. The challenge IMO will be the operations and liabilities.
I have looked in that direction and even talked with a couple of operators … securing the capital is only part of the challenge. It is Running a business… staffing and liability is what gave me cold feet.
Brian Burke is making a play for this asset class and he is pretty darn Smart !!!Brian Burke is making a play for this asset class and he is pretty darn Smart !!!
Finding someone else to run it other than me and I still reap a good percentage of the return would be the challenge. I’m all ears for suggestions. :-)
Invest in Brians syndicate let them do the heavy lifting.. :) I worked for a syndicator in the 80s and we bought 3 facilities in the SF bay area.. They had a hard time switching from MF to this asset and did not do very well with it.. But I suspect Brian will hire the right folks to make sure he understands the pain points etc and will be successful. With 100% cost seg this year might be something to look into if they are doing the cost seg.. I know I am going to take a look for some diversification this year.I second your direction here Jay.
With many Dr friends and some insight into assisted living, it is a significant operation to run. Keep in mind the cross over with insurance and that whole circus.
Being an LP into such is in my opinion the way to go.
- Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes1y
I I have done two brrs! Just jump in and do it. Worst comes to worst you hold as a normal rental and refi in future. With rates where they are it’s hard to get them to work. Both I got to work were pretty much gut rehabs.
- Rental Property Investor · Member since 2020 · 2 posts · 0 votes1y
Great question. Given your experience in other areas of real estate and your time constraints, the key to succeeding with BRRRR isn't just finding a deal—it's building the processes before you even make an offer. I would focus on two main pre-deal systems:
1. Team. Line up an investor-focused contractor, a hard money/private lender for the purchase/rehab, and a DSCR lender for the refinance. Get their criteria and pre-approval in hand.
2. Define your buy box: Define your numbers with absolute clarity before looking. For example: "I will only buy at 70% of ARV minus repairs and rent must produce xx DSCR at current rates".
- 1yCharles ClarkBusiness MemberReal Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
@Austin Fowler
"BRRRR is a great strategy, especially in today's market! 🔑 I'd be happy to chat and share insights on finding the right deals and managing the rehab—what stage are you at in exploring BRRRR?
Raise the Standard RE LLC55 Reviews- Investor · Reseda, CA · Member since 2019 · 297 posts · 150 votes1y
Quote from @Charles Clark:
@Austin Fowler
"BRRRR is a great strategy, especially in today's market! 🔑 I'd be happy to chat and share insights on finding the right deals and managing the rehab—what stage are you at in exploring BRRRR?Thanks Charles, reached out to you by email. For the forum, we would love to hear more about your own experience with BRRRRs. What is possible in your market? Many people on this thread have mentioned that their local markets are not favorable at the moment.
- Real Estate Broker · Belmont, MA · Member since 2025 · 150 posts · 65 votes1y
Hey Austin,
Absolutely, happy to share some perspective. The BRRRR strategy can be a great way to build equity and cash flow, especially in a market where buying turnkey properties is pricey. The key is finding deals where the numbers make sense even after renovation—don't underestimate holding costs, rehab timelines, and potential surprises in older homes.Start by running the numbers backward: what rent you can realistically get, what the ARV is, and how much renovation it will take to get there. Lenders will look closely at ARV and post-renovation condition, so planning your scope carefully is crucial. Also, lining up a contractor you trust and knowing your local market inside-out will save you headaches and keep your timeline tight.
If you want, I can break down a simple approach to evaluate a BRRRR deal so you can quickly see if a property is worth your time before you even put in an offer.
- Lender · Las Vegas, NV · Member since 2013 · 28 posts · 7 votes1y
You're on the right track, Austin. With BRRRR the key is making sure your financing lines up with your refi timeline and ARV. Seasoning and appraisal can trip people up. Happy to answer questions if you want to dig in.
- 1yJames JonesPro MemberInvestor · Collierville, TN 38017 · Member since 2017 · 635 posts · 462 votes
Great question, Austin. The BRRRR strategy is all about buying below market, forcing appreciation through rehab, then pulling your cash back out so you can repeat.
A simple roadmap for starting:
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Buy – Focus on distressed or undervalued properties where you can add value.
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Rehab – Stick to renovations that increase appraisal value (kitchens, baths, major repairs).
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Rent – Get stable tenants in place, ideally long-term or Section 8 for guaranteed rent.
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Refinance – Refinance at the new appraised value and pull cash back.
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Repeat – Roll that money into the next deal.
Key tip: Don’t over-rehab. Every dollar should increase value or rent potential. Start with one deal, learn the process, and scale from there.
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- 1yScott ScovilleBusiness MemberReal Estate Agent · Sacramento, CA · Member since 2019 · 497 posts · 272 votes
Quote from @Austin Fowler:
Is there anyone here up for a chat with a newbie to BRRRR investing? I've invested in many other areas of real estate, but not this one, and with current interest rates making purchasing good condition property unappealing, it seems time to look into fixing the house before renting.
Hey Austin, I've BRRRR'd in Sacramento, mostly value add properties. Happy to connect.
- 1yRyan RomingerBusiness MemberReal Estate Broker · Indianapolis, IN · Member since 2018 · 340 posts · 144 votes
The BRRRR strategy can definitely make sense in the current market, especially with rates where they are, it lets you build equity while creating a rental that's more appealing to tenants. There are a few local considerations to keep in mind around rehab costs, appraisal timelines, and rental demand, but it can be a solid path if you structure it right.
Intrigue Real Estate & Property Management4.6285 Reviews - Property Manager · Erie & Millscreek PA | Maggie Valley & Haywood County NC · Member since 2024 · 264 posts · 118 votes1y
Hi @Austin Fowler, welcome to the BRRRR side of investing! You're right in this rate environment, adding value through rehab can make a lot more sense than buying turnkey.
A good way to get started is:
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Learn the numbers — focus on ARV (after-repair value), rehab costs, and what lenders require for the refinance.
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Build a reliable team — a contractor, a property manager, and a lender familiar with BRRRR (DSCR or local banks).
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Start small — your first deal doesn’t have to be a huge project; even a light rehab can show you the full cycle.
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Network with other BRRRR investors — lots of lessons learned around appraisals, refinance timing, and managing cash flow.
Happy to connect and share what I’ve seen work well if you’d like to dig in further.
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- 1yCharles ClarkBusiness MemberReal Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
@Austin Fowler
Welcome! BRRRR is a smart move in this market—happy to chat and share insights.Raise the Standard RE LLC55 Reviews - Specialist · Member since 2025 · 483 posts · 270 votes11mo
BRRRRs can work right now if you keep them simple: pick light-to-medium rehabs in landlord‑friendly markets, buy at a real discount, and line up your core four before you swing a hammer. Underwrite conservatively with today’s rates, verify rent with your PM, and get two contractor bids with a line‑item scope and draw schedule; if you can’t see a clear refi exit within 6–12 months, pass. Next step: define your buy box, run 20 leads through your analyzer, and make one offer that pencils with a small contingency and multiple exits.
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