

The BRRRR Strategy Still Works—If You Avoid These 3 Mistakes
The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) isn’t dead—it’s just changed.
With higher rates and tighter lending guidelines, you need to be more disciplined than ever. If you're trying to BRRRR in today’s market, avoid these three mistakes:
1. Overpaying Up Front
Your money is made on the buy. Don't fudge ARV numbers or hope for rising comps. Be brutal with your rehab budget and purchase price.
2. Counting on a Refi That Doesn’t Pencil
Refinance terms are stricter now. Run your numbers assuming today’s rates—not future drops. If it still cash flows after the refi, great. If not, don't buy.
3. Forgetting About Seasoning Periods
Some lenders now require 6+ months of seasoning before you can refi. That affects your timeline and ROI. Plan accordingly.
Final Thought:
BRRRR still works—but it's no longer a casual play. It’s a discipline. Treat it like a business and you can still build wealth—even in a tougher lending environment.
Comments