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Education1 min readBriks AI
The BRRRR math nobody talks about
Buy, Rehab, Rent, Refinance, Repeat looks clean on a podcast slide. Here is the cash trap that kills 80% of new BRRRR investors.
Every BRRRR explainer leaves out the holding-cost math during the rehab + season window. That gap is where most new investors get stuck.
The basic loop
Buy under-market. Rehab for forced appreciation. Rent at market. Refinance to pull most of your capital back out. Repeat.
Where the model breaks
Example BRRRR
- Price
- $120,000
- Rent
- $1,450/mo
- Cap rate
- 8.5%
- Cash flow
- $310/mo
The numbers REIA defaults to
We assume 6 months between purchase and stabilized refi. Edit it if your timeline differs.