New ways of realestate

Member since 2025 · 1 post · 1 vote

Hey I'm new to all this. I'm actually about to start building my first spec house in the heights!!! My question is, is BRRRR still a thing or is there new ways of buying and holding rental properties. I like to also buy to hold and do tear downs and re builds. Any advice or suggestions on anything that's new coming to the realestate industry would be greatly appreciated!!!

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Joseph CacciapagliaBusiness Member
Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
1mo
BRRRR is definitely still a thing. It's much tougher to pull off in a short timeline than it was a few years ago, but it's all about finding/making a deal that works. There has always been a big risk on the refinance R, and that's still true today. People just forgot about and/or ignored that risk for a few years.
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Marvin ChapmanPro Member
Rental Property Investor · Atlanta, GA · Member since 2025 · 18 posts · 7 votes
1mo
Carson, my take is that the BRRRR strategy is still a thing. It is just evolving. Higher interest rates and construction costs are leading to an approach that requires more precision from investors. As a result, investors are more focused on the equity to be gained and cash flow to be created and less on a simple cosmetic flip.

There are several alternatives to the traditional BRRRR. You will find that these incorporate some of the BRRRR elements. First, you could employ the Build to Rent strategy. Instead of buying an older home, you build a modern, highly efficient single unit or duplex. Then, you rent it out to quality tenants. Upon establishing consistent cash flow for six to twelve months, you can refinance the property to access equity. Additionally, you have avoided the specter of maintenance costs because the development is new.

Another strategy involves developing an accessory dwelling unit. If you buy an existing home with a large lot, you may be able to build an ADU. With the detached ADU, you can now double your cash flow by renting both the existing home and the ADU. Next, you can refinance and access the equity that you have created after six to twelve months.

Next, you can engage in a strategy that does not require traditional bank financing. This would involve investing with a digital platform. Partnering with digital platforms or fractional syndicates will allow you to buy equity into a property or sell your equity to passive investors online. With this strategy, you keep management costs at a minimum and focus on growing cash flow. With this path, you can scale the size of your investment more quickly without the traditional debt to income demands that come with traditional BRRRR.

I wish you well on the path that you pursue.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1mo
Quote from @Carson Tinkle:

Hey I'm new to all this. I'm actually about to start building my first spec house in the heights!!! My question is, is BRRRR still a thing or is there new ways of buying and holding rental properties. I like to also buy to hold and do tear downs and re builds. Any advice or suggestions on anything that's new coming to the realestate industry would be greatly appreciated!!!

Not sure what you're exactly asking!
BRRRs have been around FOREVER!
- BP just created a "cool" name them.
Are they as easy to do now vs 3, 4, 5, years ago? NO!
But, there are always investors buying ugly properties, fixing them up to rent out and then refinancing to pull money out to repeat the process.
Really, the only "new" thing in the industry is the proliferation of DSCR loans - which just brought what's been available forever for commercial properties to the 1-4 family space.
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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 904 votes
1mo
Quote from @Carson Tinkle:

Hey I'm new to all this. I'm actually about to start building my first spec house in the heights!!! My question is, is BRRRR still a thing or is there new ways of buying and holding rental properties. I like to also buy to hold and do tear downs and re builds. Any advice or suggestions on anything that's new coming to the realestate industry would be greatly appreciated!!!

BRRRR is definitely still relevant, but I wouldn't get too caught up in finding the "new" strategy. The fundamentals still matter most: buy right, control rehab costs, know your numbers, and create enough equity to give yourself options for a refinance or a hold. Since you're already interested in new builds and teardowns, you may also want to compare those numbers with buying existing value-add properties, especially in Midwest markets, where lower acquisition costs can sometimes make the math work better.
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