Not long ago, we bought three houses in just nine months—and it was a wild ride. We’ve flipped houses and owned a rental duplex before, but we’ve never had investment opportunities come at us this fast. Someone we know is retiring from rental property ownership and reached out to see if we wanted to buy. One deal led to another, and soon after, a friend was ready to sell their home as well. The houses were priced well, and the timing just kept working out. In the past, we’ve had time to sell one property before using the profits to buy the next. We even worked with a third-party investor when we first started. But this time, we had to take a completely different approach—and that’s when I started digging into the BRRRR real estate strategy.
I’m not a financial advisor or legal expert, and this isn’t investment advice—just our story. I’m sharing it because I wish someone had told us about this method sooner. If you’re interested in real estate investing and want to know what’s possible, the BRRRR strategy might open your eyes the way it did for us.
BRRRR Real Estate Strategy: What It Is and How It Works
What Is the BRRRR Real Estate Strategy?
The BRRRR real estate strategy stands for:
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Buy
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Renovate
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Rent
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Refinance
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Repeat
It’s a smart approach that helps you buy undervalued properties, increase their value, rent them out, refinance to pull out your investment, and then do it all again. It’s one of the most effective ways to build a real estate portfolio using the same pot of money multiple times.
Again, I’m not giving investment or legal advice—just showing what worked for us and what this method looks like in real life.
Step 1: Buy
In our case, we found properties that needed some love—houses priced well below market value because they were outdated or neglected. That’s the first step of the BRRRR real estate strategy: buying low so you can build equity quickly.
Tip: Look for homes that need updating and are in good areas. We found all three of ours through off-market deals. Before you make an offer, make sure you know the market and understand what the house will realistically be worth after the rehab. The numbers have to make sense. You want to buy low enough that there’s room in the budget for renovations and profit—whether you plan to rent or eventually sell. It’s crucial to research comparable sales, estimate your rehab costs accurately, and avoid overpaying. The numbers are truly the most important part of the BRRRR real estate strategy, so take your time and do your homework upfront.
Step 2: Renovate
After the purchase, we rolled up our sleeves and got to work. Most of the homes needed cosmetic updates. This step can be overwhelming, but it’s also where the value increases.
The goal is to force appreciation—make the house worth more through improvements. We kept the renovations budget-friendly and focused on updates that made the home livable and updated where they needed to be.
Step 3: Rent
Once rehab was complete on the first house we got, we found great tenants. Renting not only brings in monthly income, but it’s also a key part of qualifying for the refinance later.
Note: Screening tenants well and setting a fair market rent is crucial. We wanted good renters who’d care for the home, and we took time to get that right.
Step 4: Refinance
This step was a learning curve for us. After the property was rehabbed and rented, we got the house appraised and worked with lenders to refinance based on the new, higher value of the home. In the first house, we were able to pull out most of our initial investment, which meant we could go buy the next property. One thing to note (that we didn’t know) – to get the full value of the new appraised price, we needed to show that the house was rented for at least a year. Even though we went to them with a signed lease and were ready to go, they needed to see it rented for a year. It worked out for us because we were still able to pull out 80% of what we paid for the house and can use the entire appraised value at the year mark of it being rented.
Step 5: Repeat
The last part of the BRRRR method is to repeat the process to keep buying properties. That’s how we were able to purchase three homes in less than a year, without having to come up with fresh cash for every deal.
A Few Things to Keep in Mind
Let me say this again—I’m not offering professional, legal, or investment advice. I’m just sharing what worked for us and what we learned along the way.
But here are a few lessons we picked up:
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The numbers have to work. Do your research.
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Renovation costs can creep up fast—build in a buffer.
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Not every property is a good BRRRR candidate. Be picky.
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You’ll need solid credit and lending partners for the refinance step.
Why I’m Sharing This
We had heard about this strategy but didn’t know all the nuts and bolts until we were halfway through it—and I can’t help but think how much smoother things might’ve gone if someone had explained it earlier. That’s why I’m sharing it now. If you’ve been thinking about investing in real estate but aren’t sure how people grow their portfolios, this might give you a new perspective.
You don’t need a huge savings account to get started. We were able to buy the first house in our 3-house process here with cash, but we will be moving forward with the rest of them and any more that come along with the BRRRR real estate strategy. With this strategy, you can start small, learn as you go, and build something long-term.
Our journey into real estate investing started with curiosity, some elbow grease, and a whole lot of learning. We have been doing this for years in a different way. We have flipped houses and had a rental duplex at one time. We did not use this method for those because we weren’t getting them as fast, and we were selling most of them after we got the renovations done. Now, we want to have the rental aspect of it with the upcoming houses. The BRRRR real estate strategy will play a big role in helping us scale and use our resources wisely. It’s not always easy—but it’s absolutely doable.
So no, I’m not a professional investor or an expert—but I am someone who’s done it, made mistakes, and figured a few things out along the way. If this strategy helps even one more person realize that real estate investing is possible, then I’m glad I shared it.
I have a full podcast episode about this process and more details about how we fell into this personally. Find my podcast HERE.
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