How to Use the BRRRR Method in 2025 (Step-by-Step Guide for Investors)

[Jeremy Beland]

Think you need to save a 20% down payment every time you buy a rental property? Think again.

When I bought my first rental, I thought the same thing—that to scale, I'd have to slowly scrape together cash for each new deal. But then I discovered the BRRRR method, and it completely changed my trajectory. It's the strategy I've used to buy almost all of my rentals, and it's the reason I've been able to build long-term wealth without draining my savings every time I wanted another property.

In this post, I'll break down exactly how the BRRRR method works in today's market, (at least for me) step-by-step, the biggest mistakes to avoid, and why this strategy is still alive and well in 2025.

Why the BRRRR Method Still Works in 2025

Let’s be real—2025 is not 2020.
Interest rates are higher.
Prices are more conservative.
Lenders have tightened up on DSCR and LTV requirements.
Rehab costs are up.

But here’s the upside:
There are more motivated sellers.
Off-market deals are everywhere.
Rents remain strong across most markets.

The BRRRR method isn’t dead—you just have to buy better and smarter.

What Does BRRRR Stand For?

Buy – Purchase a property under market value.
Rehab – Fix it up to increase its value.
Rent – Place quality tenants and start generating income.
Refinance – Pull out most or all of your original cash.
Repeat – Use that same capital to buy the next property.

It’s like recycling your down payment—over and over again.

Step-by-Step: How I Execute the BRRRR Method

Step 1: Buy Right
Target discounted off-market properties or buy from reputable wholesalers.
Build in margin upfront—never count on appreciation to bail you out.
Run comps, negotiate hard, and lock it up at the right price.

Step 2: Rehab Smart
Get clear, written bids from legit contractors.
Always budget for contingencies—you’ll need them.
Focus upgrades on what renters value most: kitchens, bathrooms, and flooring.

Step 3: Rent Effectively
Research rental comps so you know your market rates.
Screen tenants thoroughly—this is where many landlords get burned.
Factor in vacancy and maintenance from day one.

Step 4: Refinance Carefully
Understand your lender's requirements (DSCR, max LTV, seasoning period).
Rate shop to get the best deal.
Working with local commercial banks can offer more flexibility.

Step 5: Repeat Responsibly
Don’t overleverage—cash flow is king.
Use flips or private lending to fund future BRRRRs if needed.
Keep reserves for repairs, vacancies, and surprises.

Who Should Be Using the BRRRR Method in 2025?

This strategy is perfect if:
You’ve flipped or wholesaled properties and want to start keeping assets.
You want long-term, passive income that doesn’t require daily hustle.
You’re ready to stop chasing checks and start building generational wealth.
You want tax benefits like cost segregation to offset income.

Biggest BRRRR Mistakes to Avoid

Overpaying – Not building in enough margin at purchase.
Underestimating Repairs – Rehab always costs more than you think.
Weak Tenant Screening – One bad tenant can destroy your cash flow.
Ignoring Lender Requirements – Know your refinance criteria upfront.
Overleveraging – Leaving yourself with no reserves.

Why I Love the BRRRR Method

Your first rental teaches you the game.
The BRRRR method teaches you how to win—again and again.
It’s not magic. It’s math.
If you buy right, rehab smart, and know your numbers, you can turn one down payment into an entire portfolio.

Final Thoughts: Take Action Now

Don’t wait for the “perfect” market—there’s no such thing.
The right deals are out there if you know how to find them and run the numbers.
BRRRR is still one of the most powerful tools to build wealth in real estate, even in today's higher-rate environment.

Anyone else still actively using BRRRR in 2025? What’s been your biggest challenge so far?