BiggerPockets Real Estate Podcast

Episode: How to Do a “Slow BRRRR” in 2025 (Better Than BRRRR)

Host: Dave Meyer
Release Date: September 10, 2025

Overview: Main Theme and Purpose

Host Dave Meyer explores the "Slow BRRRR" strategy—an updated, lower-risk version of the classic BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method—tailored to 2025's market conditions. Meyer argues that while the original BRRRR method is still viable, changing interest rates and tighter lending mean investors must adjust their expectations and tactics. He outlines why and how a patient, risk-conscious BRRRR approach works better in today’s market, offering a step-by-step guide and real-world case study for investors at any stage.

Key Discussion Points & Insights

1. What is BRRRR? Why Change is Needed (00:15–06:30)

• The BRRRR method lets investors recycle capital by renovating and refinancing underused or distressed properties.
• Changes since 2021–22: higher interest rates, tighter underwriting, conservative appraisals, stagnating rents, and more expensive renovations have made the "perfect" BRRRR rare.
• Dave critiques the "perfect or nothing" mindset, emphasizing that good but not perfect deals can still build wealth.

Quote:
“Perfect is the enemy of good. ...You’re overlooking great, cash flow producing deals because it’s not a hundred percent perfect.”
— Dave Meyer (05:32)

2. The "Slow BRRRR" Approach: Why It Works Now (06:31–13:30)

• Value-add investing ("forced appreciation") remains fruitful: buy low, renovate, and unlock equity.
• On-market deals (via agents, MLS, or pocket listings) are improving in quality and negotiability.
• Properties are sitting longer, favoring buyers—giving time to finance and close without expensive hard money loans.
• The market is likely to be flat or decline slightly, but, “You don’t stop investing, you just adapt your strategy.”
• Patience and long-term vision are key; Slow BRRRR fits the wealth-building timeline of real estate.

Quote:
“You can invest in any kind of market, but you have to use conditions to your advantage.”
— Dave Meyer (10:15)

3. Step-by-Step Breakdown: Executing a Slow BRRRR (13:35–25:00)

Step 1: Find the Right Property

• Criteria: Habitable, on-market, eligible for conventional mortgage (not hard money).
• Look for small multifamilies (duplexes, triplexes) that are at least break-even or offer quick upside (cash flow within 3–6 months).
• Downside protection is primary—ensure you can hold if the market worsens.

Step 2: Analyze Returns and Timelines

• Aim for break-even cash flow within 6 months; target 8% cash-on-cash return post-stabilization (18–24 months).
• Returns should exceed what you’d get from passive investments like the stock market (i.e., 8–9%), aiming total returns of 12–15% for the extra work/risk.

Quote:
"Do yourself a favor, go look at a compound interest calculator... The difference between 8% and 12% over 30 years can be truly life-changing."
— Dave Meyer (18:19)

Step 3: Value-Add Over Time

• Don’t worry if units are occupied or if renovations will be staggered—a slow approach is less risky and gives flexibility.
• Accept that “recycling capital” may not be instant, but better risk-adjusted returns make it worthwhile.

Step 4: Strategic Refinance

• Refinance only when you have a concrete use for the capital (e.g., next deal), not simply because you can.
• After stabilization, weigh the tradeoff between higher cash flow versus cashing out equity for more deals.

4. Detailed Case Study & Example Numbers (26:01–30:45)

Example: Midwest Duplex

• Purchase Price: $320,000
• Down Payment (25%): $80,000
• Renovation (two units): $40,000
• Total In: $120,000
• Pre-renovation Rents: $3,000/month (break-even)
• Post-renovation Rents: $3,900/month (after 18 months)
• Appreciation: Property now worth $420,000
• Refinance: Cash-out $65,000–$75,000; 8% cash-on-cash return remains.

Quote:
"You are getting a cash flowing asset. You are building equity. You are recycling some of your capital so you can go do another one. ... Everyone should be considering this."
— Dave Meyer (30:15)

5. Practical Guide: Step-by-Step Checklist (30:46–42:30)

• Define a Buy Box: Know your market, renovation comfort level, and ARV goals.
• Develop Deal Flow: Use a real estate agent to source on-market and pocket deals.
• Secure Financing: Prefer conventional loans; prepare for a 30–45 day close.
  • Renovation funding options: 203k loan, cash, HELOC, partners, or a small hard money loan just for the rehab.
• Negotiate Appropriately: Leverage the buyer’s market—deep discounts now possible.
• Prepare Your Renovation Plan: Scope work and line up contractors before tenants leave so you can act quickly.
• Lease at Market Rents: After renovation, stabilize by leasing units above previous rates.
• Refinance (Optional): When ready and if you have a next use for capital, not automatically.

6. Key Advantages & Takeaways (Summing Up)

• Slow BRRRR is low-risk, repeatable, and suitable for both new and seasoned investors.
• Works well in volatile or slow markets.
• Focuses on strong downside protection and solid, long-term returns—not quick wins.
• You can save your way into renovation, making it accessible to more people.

Notable Quotes and Memorable Moments

• On why perfection is unrealistic now:
  “Being able to do [the perfect BRRRR] is an outlier ... Don’t overlook deals that don’t meet that very strict criteria.”
  — Dave Meyer (06:00)

• On risk and patience:
  “The slow BRRRR basically takes that time pressure away and says, ‘You’ve got two years to maximize the value out of this property.’”
  — Dave Meyer (22:55)

• On financial freedom:
  "This kind of deal can get you financial freedom. It has worked well for me and so I’m going to keep doing this as long as market conditions allow me to do it.”
  — Dave Meyer (41:13)

Useful Timestamps for Important Segments

• What Is BRRRR & Why It Still Works: 00:15–06:30
• Market Changes and Slow BRRRR Philosophy: 06:30–13:30
• Step-by-Step Playbook: 13:35–25:00
• Case Study Example: 26:01–30:45
• Step-by-Step Practical Guide: 30:46–42:30
• Closing Thoughts & Summary: 41:13–42:30

Summary Tone & Language

The tone is practical, encouraging, and data-driven. Dave Meyer is relatable and honest, often reminding listeners that he seeks straightforward, low-drama strategies any typical investor can execute—no secrets, no get-rich-quick, just repeatable and thoughtful steps.

Bottom Line

The "Slow BRRRR" strategy adapts the proven BRRRR method for the current market: use conventional financing on habitable properties, focus on steady value-add and cash flow, protect downside, and recycle capital when ready—not in a rush. It’s a blueprint for scalable, resilient real estate investing in 2025 and beyond.