The New (Better) BRRRR Method: Less Risk, More Cash Flow

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 25 August 2025

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

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Summary

The BRRRR method (buy, rehab, rent, refinance, repeat) was, for a few years at least, the real estate investor’s golden ticket to a million-dollar portfolio. It allowed investors to buy properties, fix them up fast, get their down payment money back, and recycle it. This created an “infinite” investing loop where someone with one down payment could turn it into five (or more) separate houses. But with high mortgage rates, the BRRRR method was thought to be over by many…until now. We’re introducing a new BRRRR strategy. It’s safer, with less risk (and stress), makes you more cash flow than before, and keeps your leverage lower so you don’t go underwater in a housing correction. Does it work? Dave and Henry are both using this new BRRRR method right now—and doing quite well, we might add. You (yes, you listening to this) can also use this new BRRRR method to buy houses, increase their value, get higher cash flow than regular rentals, and then recycle the money you put into the property to use toward your next investment. You can invest faster, but with lower risk than before, and scale your real estate portfolio the right way, so if interest rates rise, it might not even matter for your bottom line! In This Episode We Cover The new 2025 BRRRR method that’s safer, smarter, and produces more cash flow One big problem with the “perfect BRRRR” and why you should (probably) stop chasing it You don’t need to refinance: why a HELOC (home equity line of credit) may be better Expert tips for doing your first BRRRR in 2025 with the least risk and the highest reward The right amount of money to leave in your BRRRR property (how much equity to pull out after the renovation) And So Much More! Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/real-estate-1165 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	Do Burrs still work in 2025?
0:03.1	It's been one of the most tried and true investing formulas over the last couple years.
0:07.8	You buy a property, you rehab it, you rent it out, then refinance your cash back out, and you repeat the process.
0:14.9	But with higher home prices and higher interest rates today, some people say the Burr is dead.
0:20.5	Today, we're making a ruling on that
0:22.3	question.
0:27.6	Hey, everyone. I'm Dave Meyer, a rental property investor and the head of real estate investing
0:32.2	here at Bigger Pockets. And with me today on the podcast is my friend Henry Washington. Henry, how's it going? What's up, bud? Glad to be here. I'm glad to have you because I saw this question on the Bigger Pockets Forum. And I wanted to break it down with you specifically. You've done a lot of burrs, right? Oh, yeah. Good. I figured you have, so you are the right person to help me break this down. I've also done several Burrs in my investing career. I think it's a great strategy,
0:58.8	or I should say it has been a great strategy for me in the past, but we're going to talk about
1:03.5	if it's still a great strategy going forward. So a community member posted on the Bigger Pockets
1:09.2	Foreign is a community member named Kyle asked.
1:12.6	And a quote, I'm curious what people are seeing for leverage on brewer acquisitions.
1:16.7	Has anyone successfully acquired, rehabbed, and refied a deal with less than 20% of their own cash in?
1:24.6	I'm not trying to over leverage, just exploring what's realistic in 2025. So let me just
1:30.5	explain this question a little bit, and Henry, feel free to jump in here. Kyle is referring to
1:34.9	the birth strategy, which if you've never heard it before, it stands for buy rehab, rent,
1:40.4	refinance, and repeat. It's basically an approach to real estate where you're buying a rental
1:45.2	property. That's the B. Then what you're doing is rehabilitating it that's adding value. You're
1:50.3	taking a property that needs to work. You're putting that love and that effort into it to boost
1:54.8	your equity. Then once you're done with that project, you rent it out to new tenants, hopefully
1:59.9	pulled it up to market rents and are generating good cash flow.
2:04.5	And at that point, you refinance so you can take some of the equity that you have built
	...

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