Thinking a lot about the BRRRR strategy lately... 🔄🏡

[Shaun Ortiz]

One thing that keeps coming up is how some investors start with BRRRR but eventually shift to other asset classes—self-storage, mobile home parks, even commercial spaces. Makes me wonder... is it the rehabs that get exhausting? Or is it just about scaling to something bigger?

At the same time, I've been seeing a lot of distressed properties sitting because owners don't want to deal with the process—permits, contractors, tenants, refis, all that. It seems like there's an opportunity here for the right buyers who still believe in BRRRR.

Curious to hear from those who've been in the game longer—do you still do BRRRR, or did you pivot? And for those looking to exit, was it the headaches, or just a shift in goals?"

[Tyler Reed]

Great question Shaun! From a lender's perspective, investors don't necessarily "shift" away from BRRRR into other asset classes—they add them to their portfolios. BRRRR is such a powerful tool that it makes sense to apply it to single-family homes (SFH) early on, then leverage those skills and capital to take on the other asset classes you mentioned. It's not about leaving BRRRR behind, it's about expanding investment strategies while still utilizing what works.

As for investors passing on distressed properties, it’s not that they don’t want to deal with permits, contractors, and tenants—it’s that they’ve realized they can apply the same effort to larger asset classes with a bigger return. The process of buying, rehabbing, and stabilizing a property remains the same whether it's a duplex or a 50-unit building, but the upside is greater at scale. Investors aren’t avoiding the work, they’re just focusing on higher returns and leveraging their experience.

That said, even the high-level investors we work with still BRRRR single-family homes, they've just added larger deals into the mix. BRRRR continues to work for SFHs, and still provides steady cash flow, easy financing, and strong demand. There's a reason that big hedge funds still buy and hold houses.

Would love to hear from others—if you've scaled up, do you still BRRRR SFHs, and what part do they play in your overall strategy?