Has Anyone Successfully Done BRRRR in Sacramento recently?

[Sipan Y.]

Hey everyone,

I'm considering BRRRR (Buy, Rehab, Rent, Refinance, Repeat) in Sacramento and wanted to hear from investors who have successfully executed this strategy in the last two years. Given interest rate changes, property values, and lender requirements, I'm curious about:

How were your acquisition and rehab costs compared to your ARV?

Were you able to pull most or all of your capital out?

What lenders did you use for refinancing, and what terms did you get?

Any areas in Sacramento that worked particularly well (or didn’t)?

Any unexpected challenges you ran into?

I’d love to hear any insights or lessons learned! Thanks in advance for sharing your experiences.

[Ko Kashiwagi]

Hi Sipan,

BRRRR is tough in Sacramento especially in SFH because it doesn't debt cover at 75-80% LTV most of the time. A few of my clients are actively doing BRRRRs in Sacramento by going for duplexes, adding ADU's, splitting lots and building another SFH. By using these strategy, they are successfully refinancing the entire debt at 75-80% LTV.