Most People BRRRR Wrong — Here’s a Real One Done Right
Most people talk about BRRRR.
Very few actually execute it correctly.
So I’m breaking down a real deal I personally did using the BRRRR strategy.
I’m including:
• The Zillow link
• The Airbnb link
• My actual earnings report
No theory. No hype. Just numbers.
First, let’s reset what BRRRR actually is:
Buy. Rehab. Rent. Refinance. Repeat.
Simple concept. Powerful execution.
Here’s what matters most — and this is where most people mess it up:
You must buy it right.
Everything in real estate starts with buying at the right price.
Step 1 – Buy
This property was purchased below market value with margin built in.
Step 2 – Rehab
We forced appreciation. Every dollar spent had a purpose. No emotional renovations.
Step 3 – Rent
Now this is important.
There are multiple ways to win here.
You do NOT have to Airbnb.
The only rule is this:
It must at minimum pay for itself.
If it:
• Covers the mortgage
• Covers taxes and insurance
• Covers expenses
And you refinance and pull your money back out…
You basically bought a house for free.
That’s an infinite cash on cash return.
From there you have options:
Option 1 – Market Rent
If the area supports strong rental demand, rent it traditionally and cash flow monthly.
Option 2 – Section 8
Buy it right, place a Section 8 tenant, lock in consistent government-backed rent, and create stable cash flow.
Option 3 – Short-Term Rental (Airbnb)
If the numbers support it, optimize for higher cash flow like I did on this one.
Airbnb is what I chose for THIS deal.
But the strategy works with any of the three — as long as you buy it correctly.
Step 4 – Refinance
After stabilization, refinance based on the new value — not what you paid.
That’s how you pull most or all of your capital back out.
Now you own the asset with little to none of your own money left in it.
Step 5 – Repeat
Take that recycled capital and do it again.
That’s how portfolios are built.
This deal worked because:
• It was bought correctly at $468k
• The rehab was controlled
• The rental strategy fit the market
• The refinance timing was right and appraisal came in at $620k when we closed on the new mortgage last month
Study the Zillow link.
Study the rental strategy.
Look at the earnings report.
Then ask yourself:
If I got my money back and the property pays for itself… what is my actual risk left in the deal?
This is why I preach mastering acquisitions first.
When you control the buy, everything else becomes flexible.
This works a great in smaller markets that cashflow like crazy!!
Now drop your thoughts below:
Would you want to do this using long-term rent, Section 8, or short-term rental?
Where would you want to find property to do this strategy?
What holds you back?
Let’s break it down.
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Kevin Jimeno
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Most People BRRRR Wrong — Here’s a Real One Done Right
Smart Money Collective
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Committed individuals striving for growth in mindset, money, & business through real estate investing for wealth building.
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