Real Estate Investing with Coach Carson #452: The BRRRR Strategy is Broken - Here’s the Fix
Oct 17, 2025
The BRRRR strategy isn't dead; it just needs a tune-up! Explore adaptations for today's higher interest rates, focusing on smarter long-term returns. Learn about the new concepts like Delayed BRRRR, using HELOCs for funding, and bringing in silent partners for investments. Chad also emphasizes growing at a slower pace to avoid mistakes while mastering financial metrics like internal rate of return. Tune in for practical tips to keep your real estate journey thriving!
AI Snips
Chapters
Transcript
Episode notes
Typical BRRRR Deal Example
- Chad Carson describes buying a $175,000 house, spending $50,000 on rehab, and having $225,000 total cost with a $300,000 ARV.
- He explains sourcing funds via HELOC, private money, or personal cash to close and rehab the deal.
Why Old BRRRR Scaled Fast
- The old BRRRR worked because costs stayed below ~75% of ARV allowing full cash-out refinancing.
- That leverage plus low rates created positive cashflow and recycled capital quickly.
Recalculate Refi Payments At Higher Rates
- Recalculate refinance math when rates rise since a 7% refinance can create negative cashflow on previously profitable deals.
- Avoid refinancing at higher rates unless you accept leaving more equity in the deal to keep payments manageable.