What Investors Are Doing Differently

Question

A lot of investors say BRRRR is harder now and I’d agree.

But I’m also seeing investors still scale successfully with it.

Biggest differences:

• Buying deeper discounts
• Leaving more reserves
• Planning refinance strategy earlier
• Not relying on pulling 100% of capital back out

The investors struggling usually assume the refinance will solve everything later.

Are you still underwriting BRRRRs aggressively or more conservatively now?

James Jones · Answer

If you’re still underwriting BRRRRs like it’s 2021, you’re going to get hurt.

We’re more conservative across the board.

A few shifts we’ve made:

Buy at numbers that work without a perfect refi

If the deal only works when we pull 100% back, it’s too thin.

Stress test refi value 10–15% below pro forma

If it still cash flows and still clears DSCR, it stays in play.

Leave more cash in

I’d rather have 20–30K left in a deal that’s stable than force a full pull-out and operate tight.

Underwrite rents below peak comps

No assuming “top of market” unless the asset truly deserves it.

Aggressive underwriting works in rising markets.

Durable underwriting works in any market.

The real mistake isn’t being aggressive.

It’s being dependent on one outcome.

Stacy Raskin · Answer

Still a good time to buy- in many markets, buyers have more room for negotiation with sellers which allows for better deals. Definitely beats the environment in 2022 when I remember buyers overpaying $100,000 for a condo that was listed for $400,000 and being one of 15 people making an offer and still not winning the offer.