BRRRR for Beginners: How to Build Massive Wealth with This “Dead” Strategy

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 5 March 2025

⏱️ 39 minutes

🔗️ Recording | iTunes | RSS

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Summary

The BRRRR strategy is arguably the fastest way to build wealth with real estate. Just ask Leka Devatha, a Seattle-based investor. She’s got ONE BRRRR property this year that could make her $600,000 in profit. And that’s ONE home, not an apartment complex. So what is the BRRRR strategy, and why do so many investors write it off instead of trying it in 2025? Are they missing out? Absolutely! BRRRR stands for buy, rehab, rent, refinance, repeat. The basic formula is this: buy a house that needs some improvement, renovate the home (to a scale you’re comfortable with), rent out the home to tenants now that it’s fixed up, and refinance it. Now that the property is worth more, you may be able to get the bank to pay YOU back your initial down payment and renovation costs due to the increase in equity. Then…repeat until you’re financially free. How do you pull off a BRRRR in 2025 with high interest rates, high home prices, and rising renovation costs? Dave and Leka are walking through their own BRRRR deals, showing you how to successfully BRRRR and do it without using ANY of your own money (seriously!). In This Episode We Cover: The BRRRR strategy explained and whether it still works in 2025 Leka’s BRRRR deals making her up to $600K! The best property types for BRRRRing to get more cash flow, higher appreciation, and bigger returns How to use other people’s money (OPM) to fund your BRRRR investments The “DADU” strategy that could skyrocket your home price with one savvy addition And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Ask Your Question on the BiggerPockets Forums BiggerPockets YouTube Apply to Be a BiggerPockets Podcast Guest! Maximize Your Real Estate Investing with a Self-Directed IRA from Equity Trust Save $100 on Real Estate’s Biggest Event of the Year, BPCon2025 Grab the BRRRR Book Sign Up for the BiggerPocket Real Estate Newsletter Find Investor-Friendly Lenders What is the BRRRR Method & How to Use it to Invest in Real Estate Connect with Leka Connect with Dave (00:00) Intro (03:42) BRRRR Strategy Explained (05:38) How to Boost Home Value (08:47) BRRRRing with No Money (12:50) Using Other People’s Money (15:39) Refinancing Your BRRRR (18:39) Real 2025 BRRRR Examples (23:03) Best BRRRR Property Types (26:08) The Secret to Finding Deals Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1091 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is still the fastest way to scale your rental property portfolio in 2025.
0:06.7	You buy a house, you renovate it, and then pull some or all of your equity out, and then
0:11.9	buy another.
0:12.8	Even with today's interest rates, it can still work if you get creative.
0:26.3	Hey, everyone, it's Dave Meyer, head of real estate investing here at Bigger Pockets.
0:31.1	Today on the podcast, we are revisiting an old friend, the Burr strategy.
0:34.9	If you're not familiar with this strategy, here's how it works.
0:39.9	First, you buy a property, that's the first B, then you rehab that property,
0:45.8	which will add value, then you rent out that property, and next you refinance the property.
0:50.5	And this is the key step, because if everything goes according to plan, you increase the property's value enough that you can pull back out most or all of your cash from
0:55.2	your down payment and renovation budget. And then the last R in the Burr acronym is repeat that
1:01.3	process with a new property. And if this all goes how it should, Burrs can be incredibly
1:07.7	powerful. Because at the end, you own a newly renovated cash-filling property,
1:13.2	but you still also have most of your starting capital to go put into another deal. And when
1:19.5	Brandon Turner and Bigger Pockets coined this term back in the 2010s, it was relatively easy
1:24.9	to pull off. But today, especially with higher interest rates and higher
1:29.0	rebatt costs, it's much rare to have everything go perfectly. More often, you're going to have to
1:34.8	leave some of your cash in that deal, or you'll have to accept only break even cash flow on the
1:40.2	back end. But that does not mean that Burr is dead. It just means that you need to modify it.
1:46.0	You need to get more creative.
1:47.7	You need to do the work as an investor to leverage the burr along with other strategies like
1:53.5	ADUs and zoning upside to meet your own financial goals.
	...

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