Is the BRRRR strategy still worth pursuing with current interest rates?

real estateinvestingBRRRR

Nadezhda_K

Joined:
11.08.2022
Posts: 1606

Topic Starter

09.01.2025 18:43

I've been looking into getting started with real estate investing, and the BRRRR method seems like a solid way to build a portfolio. However, with interest rates being where they are right now, the numbers on a lot of these properties just don't seem to pencil out as well as they did a few years ago. I'm worried that by the time I factor in the rehab costs and the higher mortgage payments, the cash flow will be non-existent. Has anyone successfully executed a BRRRR deal in the last six months, or should I be looking at a different strategy until the market stabilizes?

11 replies in this topic

vulk_samotnik

Joined:
09.06.2021
Posts: 1512

10.01.2025 06:54

The BRRRR method isn't dead, but the 'buy' part of the equation has changed drastically. You can't just look for average deals anymore; you need deep discounts to make the numbers work with these rates.

anonimen_bg

Joined:
15.07.2022
Posts: 768

20.01.2025 02:02

In reply to a previous post

I actually closed on a duplex in October using BRRRR. It's definitely harder, but if you find a seller who is motivated and you manage your rehab costs strictly, it is still possible to get most of your capital back.

tech_geek_bg

Joined:
16.10.2024
Posts: 344

19.02.2025 10:31

In reply to a previous post

It's all about the 'Refinance' part. If you're banking on rates dropping significantly by the time you're ready to refi, you're gambling. Make sure the property cash flows even with the current high interest rates, otherwise, it's too risky.

iztrit_potrebitel

Joined:
19.09.2022
Posts: 907

28.04.2025 14:19

In reply to a previous post

Most people are pivoting to creative financing right now. Have you looked into seller financing or assuming the seller's existing mortgage? That's how a lot of investors are bypassing the high interest rates.

Oliviya_T

Joined:
09.01.2025
Posts: 1366

03.06.2025 08:48

Honestly, I've put my BRRRR plans on hold for now. The risk-to-reward ratio just doesn't feel right compared to just parking my cash in high-yield savings accounts or short-term notes.

Stefan_W

Joined:
15.05.2025
Posts: 206

04.08.2025 18:26

In reply to a previous post

I agree with @RealEstateInvestor, the market is definitely waiting for rates to settle. Why rush into a bad deal when there's no pressure?

radek_sofia

Joined:
27.06.2025
Posts: 1240

25.10.2025 15:02

In reply to a previous post

What market are you looking in? BRRRR is extremely location-dependent. In some tertiary markets, you can still find properties that leave enough margin for the rehab and the financing costs.

Kaya_J

Joined:
30.09.2021
Posts: 942

25.12.2025 09:00

In reply to a previous post

Don't forget to account for the increased cost of materials. Rehabs are way more expensive than they were three years ago, which eats into your equity capture during the refi.

GospodinNikoi

Joined:
07.05.2021
Posts: 1710

04.03.2026 08:08

In reply to a previous post

I think a lot of people are getting stuck because they are trying to apply 2020 math to a 2024 market. You have to be much more conservative with your estimates now.

simon_v

Joined:
23.08.2023
Posts: 2303

12.03.2026 03:26

For me, the BRRRR strategy is still the best way to build wealth, but I've shifted my focus to smaller cosmetic rehabs rather than full gut jobs. Keeps the costs predictable.

lubopiten_k

Joined:
16.01.2023
Posts: 118

11.04.2026 09:29

In reply to a previous post

If you are new to this, be very careful. BRRRR is not for the faint of heart when the margins are this tight. Make sure you have a huge cash reserve for the unexpected.

Is the BRRRR strategy still worth pursuing with current interest rates?

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