BRRRR Maxes Out After 2 Homes? Spreadsheet

[Trevor Nace]

I'm new to all of this so bear with me if my assumptions, math, or understanding is incorrect. However, I don't see how the math works beyond the 2nd BRRRR house.

Using my assumptions in the spreadsheet, here is the outcome after the 2nd BRRRR house compared to a traditional method of just paying the 25% down and rehab costs out of pocket for the two homes.

Assumptions: Both houses bought at $100k with 25% down, $20k put into each house for rehab, refinanced at 75% of $160k ARV for each house.

BRRRR Method End Result: You invested $45k of your own money and bought 2 $100k houses, spent $40k on rehabbing both houses, you're in $195k debt and own 2 houses with an ARV of $320k.

Traditional Method End Result: You invested $90k of your own money and bought 2 $100k houses, spent $40k on rehabbing both houses, you're in $150k debt and own 2 houses with an ARV of $320k.

Is the whole point of BRRRR to buy 2 houses with less total personal cash invested and more leveraged? What I read about BRRR makes it seem like it can endlessly fuel new acquisitions.

Link to public Google Sheets with the spreadsheet here.

Thanks for bearing with me during a learning curve!