Using cost segregation, REPS, and 1031 exchanges together allows you to minimize taxes, recycle capital, and reinvest profits.

Even though you’ve created value through renovations, you’re now carrying more debt on the property.That said, your overall return can still improve, because you’ve effectively recycled your original capital you’re getting back the money you put into the deal and can redeploy it into the next property.So it’s a trade-off less monthly cash flow, but more velocity of money if you’re trying to scale.

The FED stated as of Dec 1st 2025 they are letting MBS come off balance sheet and utilizing that liquidity into Treasuries, not recycling into MBS.

Pull equity, deploy it into the next asset, let both cash flow, then recycle again.

With buying I find it much easier just to drop low performers and move on, with selling I'm feeling more hestitant especially due wanting to keep some consistency for my tenants but maybe I am overthinking it and should recycle through more sellers agents too.

Id probably say brrrr would be the way to go if you're trying to recycle your capital.

Will get our excavator crew to haul in Recycled concrete and spread at 6-inch depth.

That rental income will be recycled into the next purchase and so on until I replace what the 4 units are bringing in what's your take on that?

A few approaches I’ve seen work well: partnering with other investors to pool down payment funds, using BRRRR strategies to recycle capital from existing properties, and focusing on deals that generate strong cash flow from day one to build reserves faster.

I started with private money paired with small chunks of my own cash, then used BRRRR to pay lenders back and recycle capital.