investing in brrr in 2026

BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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investing in brrr in 2026

Shoham Gat
New to Real Estate · Member since 2026 · 4 posts · 7 votes

hello I have been learning a lot about the BRRRR strategy and Its seems like a great way to grow a wealth during the years as my goal is to maximize my capital in a decade from now

a main way if not the biggest to create the highest grow of my money is to have a good appreciation but as I was investigating where is the best market to invest i went to the macro appreciation for the last 3 years and even last year,(the last 10 years been amazing but a lot of bad changes went I the last years for the BRRRR investors such as end of corona, mortgage rate, insurance is some areas, many great years which create a fix now) and the numbers for median property unit were awful between negative to barely increasing (Zillow) so I stopped for a second to think, is the BRRR strategy is still a great way to start investing in 2026, I know there is renovation and force appreciation in the rehab and some places even good cash flow can create good return on your money but still for looking to create the biggest wealth you need appreciation as a main key (correct me if I'm wrong) so would really appreciate some opinions and thoughts

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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 958 votes
7mo
Quote from @Shoham Gat:

hello I have been learning a lot about the BRRRR strategy and Its seems like a great way to grow a wealth during the years as my goal is to maximize my capital in a decade from now

a main way if not the biggest to create the highest grow of my money is to have a good appreciation but as I was investigating where is the best market to invest i went to the macro appreciation for the last 3 years and even last year,(the last 10 years been amazing but a lot of bad changes went I the last years for the BRRRR investors such as end of corona, mortgage rate, insurance is some areas, many great years which create a fix now) and the numbers for median property unit were awful between negative to barely increasing (Zillow) so I stopped for a second to think, is the BRRR strategy is still a great way to start investing in 2026, I know there is renovation and force appreciation in the rehab and some places even good cash flow can create good return on your money but still for looking to create the biggest wealth you need appreciation as a main key (correct me if I'm wrong) so would really appreciate some opinions and thoughts

@Shoham Gat

You're thinking about this the right way. Appreciation is nice, but for BRRRR, cash flow and the ability to recycle your capital fast are usually even more important, especially in today's market. A lot of investors are pivoting to Midwest markets where you can buy undervalued duplexes or small multis, get strong cash flow from day one, and repeat the process quickly. Appreciation comes over time, but your real wealth-building engine early on is locking in deals that let you refinance and move on to the next one without tying up all your money. Focus on numbers that work day one and let the market's natural appreciation be a bonus.

[email protected]614-418-6081
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  • David Carfagnini
    Real Estate Agent · Boston, MA · Member since 2026 · 7 posts · 7 votes
    8mo

    Great question Shoham! A lot of people are hitting pause on BRRRR right now for the same reasons you mentioned.

    BRRRR is still a solid strategy in 2026 but it's definitely not as easy as it was a few years ago. You can't really rely on market appreciation alone anymore which is quite unfortunate. The deals that work today are the ones where YOU are creating the value yourself through buying right and renovating smart, not just waiting for prices to go up. Appreciation still helps long term, but it's more of a bonus than the main driver. The real drivers now are:

    • - Buying below value

    • - Forcing appreciation through rehab or repositioning

    • - Making sure rents support a realistic refinance 

    • - Being in markets with solid long term fundamentals

    In slower or higher-cost market BRRRR only works if you underwrite conservatively and leave plenty of room for error which is kind of like the market I'm currently around here in MA. In growth markets you still have to be careful because the last decade isn't always guaranteed to repeat itself. In my opinion it just rewards discipline and execution a lot more than it used to.

    Hope this helps provide some value! Feel free to ask any additional questions as I love talking about anything related to rehabbing in real estate!

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  • Bo SmithPro Member
    Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
    8mo

    Yeah I ditched chasing appreciation and focus on forcing it now. Buy 20-30% under market, smart rehab, then it appraises higher than my total investment. That's where BRRRR really works vs waiting on the market. You looking at distressed deals or retail?

    0Reply
  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    8mo

    Buying a property using the BRRRR method, does leverage appreciation. You have less money invested in an asset with the same amount of equity worth X amount that will appreciate.

    If I have 2 choices... Put $20k down on a $100k property VS. 5k down and that same $100k property while also having the same amount of equity in both scenarios and the property appreciates 5%. Which choice would grow my capital the quickest? 

    I think the best strategy is to buy BRRRRs in appreciating markets where you can still breakeven or cash-flow a little. I would maybe start with a more conventional purchase just to get your feet in the water especially if you're buying from OOS but then transition into BRRRRs after that. 

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  • Alex Morales
    Member since 2026 · 97 posts · 57 votes
    8mo

    You're asking the right question and I think the other replies here nail the core point - forced appreciation through smart buying and rehab is the name of the game now, not riding market waves.

    But I want to add something about your comment that appreciation is the "main key" to building wealth. That's actually only ONE of the four profit centers in real estate.

    Think of BRRRR as stacking multiple returns. First you have cash flow which builds your monthly income. Second is loan paydown where your tenant is paying down your mortgage every month adding to your equity. Third is appreciation and yes this can be market driven OR forced through rehab which is in your control. Fourth is tax benefits through depreciation and expense deductions.

    In 2021-2022 people got lazy because market appreciation was so crazy it covered up all the mistakes. Now the game rewards discipline. The deals that work in 2026 are the ones where you control the upside through buying at 65-70% of ARV, rehabbing smart to force that equity, and making sure rent covers your refi payment with room for expenses.

    The markets where BRRRR still works best right now are the ones with strong rental demand, reasonable price to rent ratios, and enough distressed inventory that you can actually find deals below market. Think Midwest secondary markets, parts of the Southeast, and tertiary cities where you can still find homes under $150k needing cosmetic work.

    What market are you looking at and whats your budget? That helps narrow down whether the math works for your specific situation.

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    8mo

    Totally agree with Alex's point that forced appreciation is the game now, not riding market waves, and I'll add the tax lens to that, Shoham. From a tax perspective, appreciation is actually the least reliable and least controllable wealth lever in BRRRR. The real compounding happens because you're stacking equity creation plus tax efficiency. When you buy below ARV and rehab, you're not just forcing appreciation, you're increasing your depreciable basis, which creates larger depreciation deductions over time. That depreciation can shelter a big portion of your rental income and, depending on structure and participation, sometimes other income too. Loan paydown is another quiet tax win because it builds equity without creating taxable income. So even in flat or slow markets, BRRRR still works in 2026 if the deal is disciplined, because your return isn't dependent on Zillow charts moving up. The post-2022 environment simply removed the training wheels. BRRRR was never about guessing appreciation, it was about controlling basis, cash flow, leverage, and taxes. When those line up, appreciation becomes a bonus, not the foundation.

    Goodluck and happy to connect!

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    8mo

    Appreciation is highly micro market specific. You can look at any city and see certain areas with high growth while others is flat or declining. The market is not the hot and there is not the insane appreciation levels as we saw during 2018-2023. There is appreciation but it's at a normal rate (my market we see 3-6%). BRRR still works but overall numbers are tight. Less deals make sense. Cashflow is tight with rates. Sometimes you can't pull money out. Each market is very different so it's important to narrow that down.

    0Reply
  • Sean GrahamBusiness Member
    Investor , CPA · Detroit, MI · Member since 2016 · 586 posts · 249 votes
    7mo

    Hi @Shoham Gat BRRRR strategy remains a powerful tool for wealth growth, particularly through forced appreciation via rehab. To truly maximize capital and boost cash flow, especially when market appreciation is uncertain, incorporate cost segregation into your plan. It allows you to reclassify components of your acquisition and rehab from 27.5-year real property to shorter 5, 7, or 15-year depreciation schedules. This generates significant immediate tax savings, enhancing your cash flow and overall return on investment, regardless of market fluctuations.

    Hope that helps!

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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 958 votes
    7mo
    Quote from @Shoham Gat:

    hello I have been learning a lot about the BRRRR strategy and Its seems like a great way to grow a wealth during the years as my goal is to maximize my capital in a decade from now

    a main way if not the biggest to create the highest grow of my money is to have a good appreciation but as I was investigating where is the best market to invest i went to the macro appreciation for the last 3 years and even last year,(the last 10 years been amazing but a lot of bad changes went I the last years for the BRRRR investors such as end of corona, mortgage rate, insurance is some areas, many great years which create a fix now) and the numbers for median property unit were awful between negative to barely increasing (Zillow) so I stopped for a second to think, is the BRRR strategy is still a great way to start investing in 2026, I know there is renovation and force appreciation in the rehab and some places even good cash flow can create good return on your money but still for looking to create the biggest wealth you need appreciation as a main key (correct me if I'm wrong) so would really appreciate some opinions and thoughts

    @Shoham Gat

    You're thinking about this the right way. Appreciation is nice, but for BRRRR, cash flow and the ability to recycle your capital fast are usually even more important, especially in today's market. A lot of investors are pivoting to Midwest markets where you can buy undervalued duplexes or small multis, get strong cash flow from day one, and repeat the process quickly. Appreciation comes over time, but your real wealth-building engine early on is locking in deals that let you refinance and move on to the next one without tying up all your money. Focus on numbers that work day one and let the market's natural appreciation be a bonus.

    [email protected]614-418-6081
    1Reply
  • Ethan HaiglerBusiness Member
    Real Estate Agent · Charlotte, NC · Member since 2019 · 111 posts · 58 votes
    7mo

    @Shoham Gat I buy value add in Cleveland to force appreciation and then the properties there deliver consistent cash flow. I’m an agent/wholesaler /private lender in the area. DM me if you’d like to jump on a phone call to discuss

    [email protected]704-607-2078
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    0Reply
  • Mario Benavidez
    Property Manager · Cleveland · Member since 2025 · 52 posts · 28 votes
    7mo

    Hi @Shoham Gat - Great post.  I sent you a private message on how we ca help.  Happy to connect. 

    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    7mo
    Quote from @Shoham Gat:

    hello I have been learning a lot about the BRRRR strategy and Its seems like a great way to grow a wealth during the years as my goal is to maximize my capital in a decade from now

    a main way if not the biggest to create the highest grow of my money is to have a good appreciation but as I was investigating where is the best market to invest i went to the macro appreciation for the last 3 years and even last year,(the last 10 years been amazing but a lot of bad changes went I the last years for the BRRRR investors such as end of corona, mortgage rate, insurance is some areas, many great years which create a fix now) and the numbers for median property unit were awful between negative to barely increasing (Zillow) so I stopped for a second to think, is the BRRR strategy is still a great way to start investing in 2026, I know there is renovation and force appreciation in the rehab and some places even good cash flow can create good return on your money but still for looking to create the biggest wealth you need appreciation as a main key (correct me if I'm wrong) so would really appreciate some opinions and thoughts

    Hey Shoham, BRRRR still works in 2026, but you can't rely on natural appreciation like in the COVID years—forced appreciation from smart rehabs and solid cash flow are key, and any market growth is a bonus. That's why Columbus, Ohio is great right now—population and job growth are strong, major companies like Intel, Amazon, Google, Honda, Microsoft, Facebook, and LG are expanding here, and you can still find properties in the $120K–180K range that hit the 1% rule and cash flow from day one, plus long-term appreciation potential. I moved here from Portland in 2020 and now own 10+ rentals, and the combination of rehab equity and a growing market has been huge for building wealth. Happy to connect and answer any questions you have!

    [email protected]614-300-7535
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  • Taylor Dasch
    Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
    7mo

    Agreed that appreciation is just icing on the cake right now. If your BRRRR doesn't cash flow at today's refi rates without factoring in a magical 5% year-over-year bump in value, it's not a deal—it's speculation. The days of sloppy underwriting getting bailed out by the market are over. Are you mostly looking at the Midwest for those $100k price points, or somewhere else?

    0Reply
  • Camren BerryPro Member
    AZ · Member since 2021 · 86 posts · 14 votes
    7mo

    BRRRR still works, but the environment just changed a bit.

    Even with the slower appreciation recently, the long-term numbers are still solid. U.S. housing has averaged about 4–5% appreciation per year, and forced appreciation through renovations can add 15–30% value depending on the project. On top of that, leverage means a lot of BRRRR investors are still seeing 15–25%+ cash-on-cash returns when deals are bought right.

    The big shift right now is buying creatively instead of relying on market appreciation. Things like seller financing, subject-to deals, and discounted off-market properties are what make BRRRR work in this environment

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  • Warren Ifergane
    Lender · Miami, FL · Member since 2024 · 37 posts · 15 votes
    7mo
    Quote from @Shoham Gat:

    hello I have been learning a lot about the BRRRR strategy and Its seems like a great way to grow a wealth during the years as my goal is to maximize my capital in a decade from now

    a main way if not the biggest to create the highest grow of my money is to have a good appreciation but as I was investigating where is the best market to invest i went to the macro appreciation for the last 3 years and even last year,(the last 10 years been amazing but a lot of bad changes went I the last years for the BRRRR investors such as end of corona, mortgage rate, insurance is some areas, many great years which create a fix now) and the numbers for median property unit were awful between negative to barely increasing (Zillow) so I stopped for a second to think, is the BRRR strategy is still a great way to start investing in 2026, I know there is renovation and force appreciation in the rehab and some places even good cash flow can create good return on your money but still for looking to create the biggest wealth you need appreciation as a main key (correct me if I'm wrong) so would really appreciate some opinions and thoughts


    BRRRR can still work in 2026, we see it evey day, but most investors don't rely on market appreciation as the main driver. The idea is usually to create your own equity through the rehab and improved rents, then refinance based on the new value.

    Appreciation is more of a bonus over time, not something most people underwrite the deal around. The investors who seem to do well with BRRRR focus on:

    • Buying below market value

    • Forcing appreciation through renovation or better management

    • Improving rents before refinancing

    If the deal only works because prices might go up later, it usually gets risky. But if the numbers work based on the value you create during the project, BRRRR can still be a solid long-term strategy.

    0Reply
  • Matthew Bernal
    Investor · Austin, TX · Member since 2021 · 497 posts · 127 votes
    7mo

    That’s a really good question, and it’s something many newer investors are thinking about right now.

    With the BRRRR strategy, most investors don't rely mainly on market appreciation. The real advantage comes from forced appreciation—adding value through renovations and improving the property's income. If you buy the property at the right price and increase its value during the rehab, you can create equity regardless of short-term market movements.

    While appreciation is a great bonus over the long term, many BRRRR investors focus first on buying below market value and stabilizing a property that produces cash flow. That's what allows them to refinance later and reinvest that capital into the next deal.

    Real estate markets go through cycles, but the ability to buy distressed or underperforming properties and improve them tends to work in most conditions.

    Out of curiosity, are you currently focusing on a specific market, or are you still exploring different areas?

    0Reply
  • Taylor Dasch
    Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
    7mo

    100% agree with this. The days of buying a mediocre deal and letting the market bail you out 12 months later are completely gone. We're sticking strictly to that 70%-75% rule too, and honestly, it's taking way more offers to get one accepted right now. The rehab is where the magic happens now, but even then, material costs and contractor reliability are making the margins tighter. Good reminder that conservative underwriting is the only way to play it right now.

    0Reply
  • Ryan D.
    Investor · Portland, OR · Member since 2026 · 67 posts · 35 votes
    7mo

    Cant agree more on this. BRRRR in general does not work any more unless rehab or STR is applied here or both. But few lenders do refi on STRs. BRRRR will work long term wise.

    0Reply
  • Idan Deutsch
    Investor · Oakland, CA · Member since 2017 · 35 posts · 12 votes
    4mo

    BRRRR in 2026 doesn't require appreciation; that's worth separating out. The strategy creates equity through the purchase-and-rehab spread, not market movement. The problem is finding deals where that spread still exists.

    The filter I use: all-in basis (purchase + rehab + closing + holding) divided by ARV. If that ratio is above 90%, the deal doesn't BRRRR on conventional financing at today's rates. In B-class MLS markets I've been screening (Cleveland specifically), that ratio is running 100-120% on listed properties. The math fails before appreciation enters the picture.

    BRRRR still works in 2026, but only off-market. MLS is structurally broken for the strategy in most markets right now. If you're screening MLS, run the comp check first before you open the full pro forma. It kills most deals in 5 minutes and saves you hours.

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