That said, I’m definitely open to hearing other perspectives if there’s a smarter way to approach this.In my market, it also doesn’t feel like values are going to jump significantly anytime soon, so I’m not sure refinancing would realistically be a near-term option to recycle capital faster.Definitely reaching out to hear from more experienced investors, especially anyone operating in similar markets.

.* He said it was too much to take the trash and recycling off the property in one trip because he has a tiny car, and that the amount was unreasonable.

How much more can you milk from the property tours?

It’s a gamble.The best BRRRRs still cash flow even if the refi comes in lower than expected.Section 8 tilts the scale.Predictable rent and long-term tenancy stabilize both strategies.Straight rentals become easier to manage.BRRRRs become easier to refinance.But the math still has to work without appreciation.Our conclusion:Straight rentals scale faster initially.BRRRR scales faster eventually, but only for disciplined operators with real systems.The fastest growth doesn’t come from choosing a side.It comes from using the right strategy at the right stage.Where are you in your investing journey right now, stacking rentals or recycling capital?

Here are some things to consider:Most of Cityfheps are coming directly from the shelter and with my experience it’s hard to vet them since they want to be out and you do not consider income and credit. in general they are not used to keep an apartment (recycling, cleaning etc…) since they do not have any responsibility at the shelter and some of them stay there for years.The city will mail you the payment and usually it’s twice a month.

But opportunity cost mattersHigh-cost markets like Sonoma tend to be:Equity + appreciation playsCapital intensiveSlower to scale unless you’re recycling equity aggressivelyIf your goal is unit count and cash flow growth, your capital will go much further in other markets.

BRRRR (Done Right)BRRRR (Done Wrong)B – Buy Purchase below market with marginB – Buy Overpay or buy with thin marginsR – Rehab Renovate on budget, on timeR – Rehab Cost overruns, delaysR – Rent Stable tenant, realistic rentsR – Rent Vacancy, weak tenant, rent shortfallR – Refinance Appraises as planned, cash-out worksR – Refinance Appraisal misses, rates spike, lender pulls backR – Repeat Capital recycled, portfolio growsR – Repossession Debt service fails → default → lender takes control 

Where I am they will even take things like old TVs because they have a deal with an electronics recycling company.

A short, predictable cosmetic rehab can support higher leverage and faster capital recycling, but the same structure on a heavier value-add deal introduces unnecessary timeline and refi risk.On the BRRRR side in particular, conservative structure seems to be outperforming aggressive underwriting.

Your numbers show you’re doing the right things, you just need a deeper discount.A $10.5K reno on a house with good bones is great, but for a full BRRRR recycle you typically need to be all-in at about 65%–70% of ARV in today’s lending environment.