Money left in deal

BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Money left in deal

Elvin Santiago
Member since 2025 · 6 posts · 9 votes
How successful have you deal BRRRRs been lately? Are you leaving money on the deal? How much are you tipically leaving. I want to start doing BRRRR and had an agent reach out to me and ask me how much I’d would like to leave on deals and suggested 10-20k was the norm.
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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
10mo
Quote from @Elvin Santiago:
How successful have you deal BRRRRs been lately? Are you leaving money on the deal? How much are you tipically leaving. I want to start doing BRRRR and had an agent reach out to me and ask me how much I’d would like to leave on deals and suggested 10-20k was the norm.

Hi Alvin, BRRRRs are definitely tougher now than a few years ago, but they’re still doable if you buy right and stay conservative with your numbers. For me, most of my recent BRRRRs in Columbus Ohio still work but I usually expect to leave something in the deal, and honestly 10–20k is pretty normal in today’s market, especially if you want decent areas and solid tenants. I moved here from Portland in 2020 to invest and now own 10+ rentals, and what’s kept deals working here is the macro growth—tons of population growth, job growth, and huge companies coming in like Intel, Amazon, Google, Honda, Microsoft, and more. Even with the appreciation, you can still find properties in that 120–180k range that hit the 1% rule and cash flow while still having room to refi most of your cash back out. I wouldn’t get hung up on the old days of true zero-in BRRRRs; leaving some money in is pretty standard now, and it’s still worth it if the deal cash flows strong and appreciates in a market growing as fast as Columbus. Happy to connect and answer any questions you have!

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  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    10mo
    It depends on the price point and the deal. I would say between 10k and 40k is the norm for me right now.
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  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    10mo

    There's no "norm" in any strategy. Those types of comparisons are what keep newbies from making moves that could change their lives forever. 

    I do BRRRRs all of the time, been doing them for 25 years and I got one under contract yesterday, as a matter of fact. For my market and personal situation- if I can create around 15% equity or more and the property is cash flow neutral or better, I'm probably going to take a run at it. 

    In some markets, you HAVE to be cash flow positive because of the returns that market provides. In others, it's less likely or necessary because of demand or highest and best use. 

    If you are just getting started and don't have much cash or income, you'll likely need to find deals where you don't leave much (or any) money in the deal and it needs some cash flow. If that's the case, your best bet is always going to be a live in BRRRR. Do a deal every year for 5+ years just like that and you'll have all kinds of options.

    Best of luck!

    0Reply
  • Elealeh Fulmaran
    Specialist · Member since 2025 · 483 posts · 270 votes
    10mo

    BRRRRs are still working for me, but I plan to leave some money in most deals today; perfect pull-outs are rare with current rates and appraisals. I underwrite to be all-in at or under about 70–75% of conservative ARV, expect to leave a small chunk if the appraisal or DSCR comes in light, and only proceed if the cash flow still pencils after the refi. Your agent's "10–20k norm" can be fine, but make it numbers-driven: set your max allowable offer off a conservative ARV, stress-test rents and rehab with a contingency, and decide your "walk" number before you write. If you want momentum, start with a light or hybrid BRRR to prove the team, then scale.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    10mo
    Quote from @Elvin Santiago:
    How successful have you deal BRRRRs been lately? Are you leaving money on the deal? How much are you tipically leaving. I want to start doing BRRRR and had an agent reach out to me and ask me how much I’d would like to leave on deals and suggested 10-20k was the norm.

     This just depends on your market

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  • Scott Chilton
    Real Estate Broker · Belmont, MA · Member since 2025 · 150 posts · 65 votes
    10mo

    Congrats on getting started with BRRRRs. When it comes to how much “profit” or buffer to leave in a deal, there’s no one-size-fits-all number, and it really depends on your market, the property, and your comfort with risk.

    Many investors aim to leave around ten to twenty thousand as a cushion, like your agent mentioned, but what matters more is that the deal still makes sense after all costs (purchase, rehab, holding, financing, and resale or refinance). Some deals might only leave five thousand, while others could leave thirty, depending on numbers and risk.

    Think of it this way: the “leftover” is your safety net for unexpected costs, and your margin for profit. If you set it too low, a surprise repair or slower refinance can wipe out gains. If you aim too high, you may miss out on deals that are still solid.

    Start with a clear budget and realistic ARV, then see how much buffer you can safely leave while still hitting your investment goals. Over time, you'll get a feel for what works in your market and with your risk tolerance.

    0Reply
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 602 posts · 451 votes
    10mo

    In my market (Memphis), the only reason you should be leaving 10–20k in a BRRRR is because the deal wasn't bought right on the front end. A true BRRRR comes down to one thing: buying at a number where the appraisal wipes out your basis.

    On my recent projects, the typical amount I leave in a deal is 0 to 5k. Sometimes I walk away with cash back at closing. The key is:
    • buy distressed
    • force serious value through rehab
    • use a lender who actually lends on ARV
    • and avoid retail pricing at all costs

    If you consistently leave 20k in every deal, you're doing "buy, rehab, refinance" not BRRRR. With the right numbers and the right system, you should be recycling the same capital over and over again.

    0Reply
  • Jake BakerBusiness Member
    Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 695 votes
    10mo

    @Elvin Santiago

    We still use the BRRRR strategy in Jacksonville, FL. It is difficult to make things pencil, and I don't see it getting much better over the next 12 months.

    I have changed my rental strategy to Co-Living (rent by the room). I don't use padsplit (weekly rentals); I rent on long-term leases in B Class neighborhoods. This plays into the affordability issues for tenants by allowing them to live in nicer neighborhoods for less money, yet I get monthly revenue comparable to short-term rentals.

    The BRRRR is alive and well. However, it is not what it used to be. "Perfect BRRRRs" are rare nowadays. That doesn't mean you shouldn't BRRRR. I see it as a complimentary strategy to pull some of your money back out and hedge your bet.

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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    10mo
    Quote from @Elvin Santiago:
    How successful have you deal BRRRRs been lately? Are you leaving money on the deal? How much are you tipically leaving. I want to start doing BRRRR and had an agent reach out to me and ask me how much I’d would like to leave on deals and suggested 10-20k was the norm.

    Hi Alvin, BRRRRs are definitely tougher now than a few years ago, but they’re still doable if you buy right and stay conservative with your numbers. For me, most of my recent BRRRRs in Columbus Ohio still work but I usually expect to leave something in the deal, and honestly 10–20k is pretty normal in today’s market, especially if you want decent areas and solid tenants. I moved here from Portland in 2020 to invest and now own 10+ rentals, and what’s kept deals working here is the macro growth—tons of population growth, job growth, and huge companies coming in like Intel, Amazon, Google, Honda, Microsoft, and more. Even with the appreciation, you can still find properties in that 120–180k range that hit the 1% rule and cash flow while still having room to refi most of your cash back out. I wouldn’t get hung up on the old days of true zero-in BRRRRs; leaving some money in is pretty standard now, and it’s still worth it if the deal cash flows strong and appreciates in a market growing as fast as Columbus. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    1Reply
  • John Salcedo
    Member since 2022 · 74 posts · 45 votes
    9mo

    I am at an experience level where I do not buy the property if I am leaving any money in the deal. At a recent refinance I pulled out cash and only financed at 60% LTV.

    0Reply
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