New to BRRRR method, which areas in Ohio are good areas for this
New to Real Estate · Member since 2025 · 4 posts · 5 votes
New to BRRRR method, which areas in Ohio are good areas for this
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Memphis, TN · Member since 2024 · 180 posts · 223 votes
4moHey @Richard Wang
I'm not sure about theOhio market ( I've heard from other investors that Akrin is a good area ), but I'd definitely recommend you check out Memphis too! I work with a lot of first time investors in Memphis that use the BRRRR method to scale their rental business quickly. Memphis has really solid rent to price ratios and we can find properties for under market value that fit into that BRRRR method. Let me know if you want to set up a call to talk further.
Best of luck!
11 Replies
- 4moNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
- 4moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 968 votes
Quote from @Richard Wang:
Hello,
I am new to real estate investing and I have never done a BRRRR( buy, rehab, rent, refinance, repeat) before, I have heard of certain areas in Ohio such as cleveland or Akron that are good areas where you can purchase distressed properties, put some money into them, perform a rehab, do a refinance and incorporate the BRRRR method.
Does anybody have an examples of which specific areas to target or does anyone have any references or guidance to assist me with this? Also, which type of property is better for a BRRRR method, single family..? multifamily...? etc, I have some additional questions as well.Thanks.
For a first BRRRR, I’d focus less on finding the "perfect city" and more on finding neighborhoods where you can buy below market value and still have strong rental demand after the rehab. Cleveland, Akron, Dayton, and parts of Columbus all have investors successfully using the BRRRR strategy, but the numbers need to be worked on for the specific property. For beginners, single-family homes and duplexes are often easier to manage and refinance than larger multifamily properties. The biggest lesson I've seen is that you make your money on the purchase, not the rehab. Buy right, budget conservatively, and make sure the refinance value is supported by real comparable sales before you ever close on the deal. - 4moAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Richard Wang:
Hello,
I am new to real estate investing and I have never done a BRRRR( buy, rehab, rent, refinance, repeat) before, I have heard of certain areas in Ohio such as cleveland or Akron that are good areas where you can purchase distressed properties, put some money into them, perform a rehab, do a refinance and incorporate the BRRRR method.
Does anybody have an examples of which specific areas to target or does anyone have any references or guidance to assist me with this? Also, which type of property is better for a BRRRR method, single family..? multifamily...? etc, I have some additional questions as well.Thanks.
I've built my entire portfolio using the brrrr method @Richard Wang. I own 30 units now here in Columbus in A/B class areas. I first started buying in C class areas and doing a ton of brrrr's there. Eventually as my income grew and I had enough equity in assets, i 1031'ed a lot of my c-class properties in B class or better.
Happy to explain more if you have questions. If you are looking for brrrr deals, buy in columbus. If you want cashflow high CoC deals with 15% down that works, look in cleveland and akron.
ReafCo | Ahmed Group 533 Reviews - 4moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Richard Wang:
Hello,
I am new to real estate investing and I have never done a BRRRR( buy, rehab, rent, refinance, repeat) before, I have heard of certain areas in Ohio such as cleveland or Akron that are good areas where you can purchase distressed properties, put some money into them, perform a rehab, do a refinance and incorporate the BRRRR method.
Does anybody have an examples of which specific areas to target or does anyone have any references or guidance to assist me with this? Also, which type of property is better for a BRRRR method, single family..? multifamily...? etc, I have some additional questions as well.Thanks.
Hey, Richard! The biggest thing I'd focus on is not choosing a market solely because you've heard BRRRRs work there. Instead, look for areas where you can consistently buy below market value, complete predictable renovations, and have enough after-repair value to support a refinance. Before looking at specific neighborhoods, I'd recommend getting comfortable analyzing deals and understanding what loan-to-value ratio your lender will allow on the refinance. A lot of new investors focus heavily on the purchase price but underestimate rehab costs, holding costs, and refinance requirements. As for property type, many investors start with single-family homes because they're generally easier to manage, finance, and resell if needed. Small multifamily properties can also work well because they provide multiple income streams, but they often require a bit more analysis. One exercise that helped me early on was reviewing recently sold properties that were renovated in my target market and working backward to estimate what the investor likely paid, spent on rehab, and refinanced into. That can give you a much better understanding of what a successful BRRRR actually looks like in the real world. My advice would be to analyze dozens of deals before making an offer, build relationships with local lenders and contractors, and make sure your first BRRRR has plenty of margin for error because renovation projects almost always come with a few surprises.
Jimmy Lieu, Red 1 Realty4.9122 Reviews - 4moStacy RaskinBusiness MemberLender · Member since 2022 · 1k+ posts · 525 votes
Some options for the fix and flip financing is up to 90% on the purchase price and $100K on the rehab done on draws with a minimum of a $100K loan amount. The LTV will depend on the borrower's credit score and the property location.
For the refinance part, you can generally get up to 75% of the new appraised value depending on the borrower's credit score and where the property is located. Many investors use a DSCR loan as the seasoning or waiting time required in between transactions is shorter compared to a conventional loan. A DSCR loan is also structured off of the actual or projected rent while a conventional loan is based on the borrower's personal income and debt to income (DTI) ratios.
In general, I would not recommend rural properties as those properties are harder to finance. Also, 1-4 units are easier to get financing on for a BRRRR and most investors start with a single family property. Working with an experienced mortgage broker who specializes in fix and flip and DSCR loans can be helpful as they will have access to programs that have more favorable terms to investors around credit scores and LTVs. Since the work is done by phone and email, it doesn't matter where the mortgage professional is since the appraiser who appraises the property will be local. Also important to work with a trustworthy mortgage professional you have done your research on as these types of loans are not regulated like owner occupy conventional loans and the terms and fees can changed all the way up until closing if working with the wrong person.
It's important to have a rehab crew in place that you trust as the rehab process usually takes longer and cost more than estimated even in the best cast scenario. Most investors find focusing on a lighter, more cosmetic flip is easier fo their first couple of deals until they have more experience. Happy to connect to discuss further.
Bright Skyline518 Reviews Welcome to the BRRRR space. Ohio can be a strong market for this strategy because many areas still offer relatively affordable acquisition costs while maintaining solid rental demand.
From what we’ve seen financing investors, many BRRRR operators focus on neighborhoods in Cleveland, Akron, Canton, Dayton, Toledo, and certain pockets of Cincinnati and Columbus. The key is not just finding a cheap property, but finding an area where the after-repair value (ARV) and rental demand support your refinance strategy.
A few things to consider:
• Buy based on numbers, not just the city. Two streets in the same neighborhood can produce very different outcomes.
• Look for properties where renovations create meaningful value and where market rents support your long-term hold.
• Verify that local rental demand is strong enough to minimize vacancy after stabilization.
• Build relationships with local property managers, contractors, and lenders before purchasing.As for property type:
Single-family homes:
- Easier for beginners to manage and understand.
- Often have a larger buyer pool if you decide to sell.
- Can be easier to finance on the refinance side.
Small multifamily properties (2-4 units):
- Multiple income streams reduce vacancy risk.
- Often provide stronger cash flow.
- Can accelerate portfolio growth when executed properly.
For a first BRRRR, many investors start with a single-family home or a small duplex because the renovation scope and management are typically more manageable.
One piece of advice from a lending perspective: before purchasing, run the refinance numbers backward. Make sure the projected appraised value and rental income will support your exit strategy. Many new investors focus heavily on the purchase price and rehab budget but don’t spend enough time validating the refinance.
If you have a specific market, budget, or target property type in mind, I’d be happy to help you analyze a sample deal and determine whether it fits a BRRRR model.
- 4moStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
One of the biggest mistakes new investors make is tailoring their entire investment strategy around successfully completing a BRRRR and recycling 100% of their capital. I understand why, all you see are discussions about scaling, accumulating more doors, replacing W2 income with cash flow, and using the same dollars over and over again. The problem is that those goals often become more important than the quality of the underlying real estate.
A successful BRRRR refinance is not proof of a successful investment. It is surprisingly easy to manipulate a construction budget, appraisal assumptions, or renovation scope to make a BRRRR work on paper. This is increasingly the case with lower cost real estate. There are plenty of investors who successfully complete the buy, rehab, rent, and refinance stages only to lose their shirts a few years later because the entire process was designed around recycling capital rather than acquiring and improving durable, sustainable real estate and the appraisal or I call it paper equity is rarely realized when buying in the perceived "strong" BRRRR markets.
Instead of asking which markets are best for BRRRRs, I would focus on finding fundamentally strong real estate that can support itself through rent growth, operating expenses, capital expenditures, and changing market conditions. If the numbers support a BRRRR, great. But the BRRRR should be the result of a good investment, not the objective of the investment.
- 4moRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Richard Wang:
Hello,
I am new to real estate investing and I have never done a BRRRR( buy, rehab, rent, refinance, repeat) before, I have heard of certain areas in Ohio such as cleveland or Akron that are good areas where you can purchase distressed properties, put some money into them, perform a rehab, do a refinance and incorporate the BRRRR method.
Does anybody have an examples of which specific areas to target or does anyone have any references or guidance to assist me with this? Also, which type of property is better for a BRRRR method, single family..? multifamily...? etc, I have some additional questions as well.Thanks.
You can BRRRR single families or muli pretty much the same way. It just comes down to how much meat is on the bone for a successful BRRRR where you pull all of your money out of
- Memphis, TN · Member since 2024 · 180 posts · 223 votes4mo
Hey @Richard Wang
I'm not sure about theOhio market ( I've heard from other investors that Akrin is a good area ), but I'd definitely recommend you check out Memphis too! I work with a lot of first time investors in Memphis that use the BRRRR method to scale their rental business quickly. Memphis has really solid rent to price ratios and we can find properties for under market value that fit into that BRRRR method. Let me know if you want to set up a call to talk further.
Best of luck!
- 4moSamuel DioufBusiness MemberReal Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
BRRRR can be a great strategy. I help a ton of investors from all over perform these types of deals here in Ohio, and I've done quite a few myself as well. It can definitely be lucrative, but it's not as easy as people make it seem, and there is a level of risk that's always involved, especially when trying to do it from a distance.
I usually see investors have better success when they start with something lighter and then continue to grow from there.
Reafco - Samuel Diouf528 Reviews - Specialist · NJ · Member since 2022 · 1k+ posts · 662 votes4mo
Richard, welcome to BP. There's lots of moving parts to the BRRRR. Some nail all the parts and do well. Some nail a few of the parts and do ok, and some are a train wreck with all parts and lose money.
If you are refinancing the asset, the risk is a little less as long as the rent can pay for the mortgage and you are ok with leaving money in, how much depends on a few factors like: How much you paid, how much was the budget, what the ARV is, and what the rent is. All those will figure into how much your refi loan will be for.
The key parts to the BRRRR that will allow you to get most or all of your money back or even pull extra money out is the sourcing. Buying on market or through a national wholesaler will almost guarantee that you won't get any money out and leave most in.
The most effective way to use financing with the BRRRR is to take the purchase out of the scenario. Buy in cash - this will get you a discount if you know where to buy - then go to the lender and cash out and get the rehab funds.
Running Rehabs is difficult. You have to know the order of operations, and a GC really can not be trusted. They will make the project run longer and cost more. You will have to:
send a demo team in
send in all mechanicals professionals (electric, plumbing, HVAC)
Get inspected before closing the walls up
Get a vendor to remake the kitchen and bathrooms
Close up the walls, add trim, molding
Paint
Lay down the floors
Exterior landscaping, cut grass, make it eye friendly
You can do a better job than a GC and I can't tell you how many GCs I worked with misused money. I've had them pocket it, use it on other projects, buy themselves tools. That's only what I caught. Imagine what I didn't.
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