Everyone talks about the BRRRR method like it’s a formula — Buy, Rehab, Rent, Refinance, Repeat.But after working with a lot of investors, I’ve noticed one thing that often gets overlooked:The “tax” side of BRRRR.Most people focus on the deal numbers — the purchase price, the ARV, the refinance rate — but forget that how you structure and record those costs can make a huge difference down the line.For example:Tracking your rehab costs separately helps you depreciate correctly later.Timing your refinance can change when interest expenses become deductible.And keeping good records on improvements vs. repairs can save you thousands when you sell or do a cash-out refi.The BRRRR method is powerful because it lets you build equity fast — but if your books aren’t clean, you’ll end up leaving money on the table when tax season comes around.The investors who scale fastest aren’t just great at finding deals — they’re great at documenting them.Curious — how do you track your rehab and refinance expenses during a BRRRR project?

Not only for the tenant experience and rentability but in the long term you could potentially condo them and sell or refinance as separate assets to push the paper value.   

@Lakita Woodson,Well said, this is exactly the kind of year-end prep that separates reactive landlords from true investors.

Going this route will allow you to pay off the first property in no time then keep moving forward. 

.• I separate the “investor story” from “spreadsheet reality.”

I do not know the answer, and you may want to post this as a separate question on another thread. 

As both a landlord and a local investor in Boca Raton, I’ve seen how deposit disputes and inconsistent inspections can cause real frustration for both owners and tenants.That’s why I started offering independent, photo-verified move-in/out documentation services for landlords, property managers, and short-term rental hosts.We provide:Neutral, third-party documentation (so owners stay compliant and protected)Flat-fee inspections starting at $9924–48 hr turnaround with photo/video reportsOptional cleaning or repair coordination add-onsCurious if others here are doing this or outsourcing similar work?

People do rent them separately in the neighborhood, but all it takes is one tenant complaint, one insurance issue, or a refinance inspection for it to blow up.

I would be more focused on getting into your first property.LLCs do come with some documentation requirements such as separate books and records, no commingling of personal vs business funds. 

thank you If the property was purchased in your name, and you transfer it with no consideration toa LLC, a good attorney would pierce that veil like warm butter since the LLC and yourself are not acting separately but jointly since you gave your LLC a property for no consideration.