If you’re a real estate investor, you’ve probably heard of the BRRRR strategy. It stands for Buy, Rehab, Rent, Refinance, Repeat. It’s a powerful wealth-building strategy that lets you recycle your capital and scale your rental portfolio. The Charlotte market is ideal for BRRRR investing, but it only works if you execute the rehab phase correctly.
What Is the BRRRR Strategy?
Buy
Purchase a distressed or undervalued property.
Rehab
Renovate the property to increase its value.
Rent
Find a tenant and start collecting rental income.
Refinance
Refinance based on the new, higher appraised value.
Repeat
Use the cash from the refinance to buy another property.
BRRRR by the Numbers
- Purchase Price: $150,000
- Rehab Costs: $40,000
- Total Investment: $190,000
- After Repair Value (ARV): $250,000
- Refinance at 75% LTV: $187,500
- Cash Left in Deal: $2,500
The Rehab Phase is Critical
The rehab phase is where you force appreciation, but it’s also where investors make expensive mistakes. The key is finding the sweet spot: durable, attractive finishes that increase ARV and rent without overbuilding. Focus on kitchens, bathrooms, flooring, paint, and functional systems. Skip the luxury upgrades.
Want to Learn More?
We’re publishing a detailed series on BRRRR investing in Charlotte. If you’re planning a BRRRR deal and want help with renovation budgeting and execution, reach out for an honest assessment of costs and timeline.