Retirement Game-Changer: My BRRRR Strategy That Built Wealth One Property at a Time

By Peter Civitarese | March 30, 2025 |

What is BRRRR?

BRRRR Strategy is a real estate strategy that helps you grow your rental property business using the same money again and again.

BRRRR stands for:

Buy – You buy a property, usually one that needs some fixing up. You try to buy it below market value.

Rehab – You fix the property. This means repairing it, updating it, and making it clean and safe so people will want to live there.

Rent – Once it’s ready, you find a good tenant. They pay rent every month, which becomes your income.

Refinance – After fixing it, the property is worth more. You go to the bank and refinance it. The bank gives you money based on the new value.

Repeat – You use that money to buy another property, and you do the same thing again.

This strategy, called BRRR strategy, lets you build wealth without needing a lot of new money every time. You keep using the same funds to grow your rental portfolio.

It takes planning and patience, but BRRRR Strategy is a smart way to grow if you want to build steady rental income over time.

My BRRRR Journey: From HELOC to Cash Flow

In the BRRRR Strategy, the Buy Phase is where my real estate journey began. I didn’t have much extra cash, but I did have something valuable, home equity. I used a HELOC (Home Equity Line of Credit) to cover the down payment. This way, I didn’t touch my savings. I kept my cash safe while using the value in my home to fund my first rental purchase.

I found a large duplex in a nice neighborhood. It had a big yard, lots of parking, and two oversized units. It looked like the perfect property for long-term rentals.

But inside, things were different.

The first-floor unit was in great shape. The tenant had clearly taken care of it and treated it like her own home.

The second-floor unit, however, was a mess. The tenants were younger, rude, and didn’t care for the place. They complained that it was a dump and blamed the landlord for everything. Luckily, they said they were planning to move out soon. That was actually good news, it gave me a clean slate to start fresh.

Then, right after I closed on the property, the first-floor tenant also gave notice. At first, I was shocked. But she had been paying way below market rent, so this gave me a big chance to improve the property’s income potential.

The Renovation Phase: Transforming a Fixer-Upper into a High-Performing Asset

Renovating the property took about 5 to 6 months. It was a big job with both improvements and surprises along the way.

One of the first issues was the old knob and tube wiring. It wasn’t safe or up to code, so we had to completely upgrade the electrical system. That alone was a big project.

Then the furnace stopped working early during the renovation. It couldn’t be fixed, so we had to replace it, which was very expensive.

Next, we had a problem with the water heater. The chimney flue didn’t meet current safety rules, so we had to upgrade that too.

The roof also needed repairs. We thought it would be simple, but the costs were higher than expected. I learned it’s a good idea to get several quotes from different contractors before deciding.

Finally, we discovered lead paint in parts of the house. Because of safety laws, we had to pay for special cleanup, which added even more cost.

All of these things made the renovation longer and more expensive than I planned. But fixing them was necessary to make the property safe, legal, and ready for great tenants.

The Rent Phase: Cash Flow Transformation

After the renovations were done, I was able to rent out both units for much more than before. In fact, the total rent from both units went up by 48% compared to what the old tenants were paying.

For the first-floor unit, it was originally listed as a 2-bedroom. But I noticed it had space that could easily be used as a third bedroom. So, I listed it as a 3-bedroom instead. This small change made a big difference in the rent I could ask.

The second-floor unit had been completely redone. It looked fresh, clean, and modern. Because of the upgrades, I was able to attract better tenants who were willing to pay full market rent.

By thinking carefully about how to use the space and who I wanted to rent to, I improved the rental income in a big way. This also helped increase my cash flow, which means I was making more money each month after covering all my costs.

In the end, smart upgrades and smart marketing turned this property into a much better investment. It showed me how small changes and good planning can lead to big results.

The Refinance Phase: Pulling Out Capital

After the renovations were finished, the value of the property went up a lot. This happened because of the improvements I made and because the housing market was strong at the time.

I decided to do a cash-out refinance. This allowed me to take money out of the property based on its new, higher value. With that money, I was able to:

Pay back my entire HELOC (the money I borrowed for the down payment).
Recover most of my renovation costs.

Even after the refinance, the property still made a profit each month. That means I had positive cash flow and now also had my original money back. This gave me extra cash for my next investment, which is the “Repeat” part of the BRRRR strategy.

Key Lessons I Learned:

Use Leverage Smartly: The HELOC gave me the freedom to invest without using all my savings.
Always Get a Home Inspection: It helps you understand what repairs you’ll need to do.
Choose Tenants Carefully: Good tenants make all the difference.
Know the Property’s Value: Small changes can increase how much rent you can charge.
Plan for the Unexpected: Repairs and surprises always cost money.
Think Long-Term: The hard work paid off with better rent, steady income, and future growth.

This project taught me a lot, and gave me the confidence to keep going.

Why BRRRR Strategy Works So Well?

The BRRRR Strategy worked really well for me, and here’s why.

BRRRR Strategy helped me grow fast. After fixing up and renting my first property, I was able to use the money I got from refinancing to start another project. That meant I didn’t need to save up all over again.

The repairs and upgrades also increased the property’s value, which gave me more equity. That’s like hidden money that I can use later.

Plus, renting the units at market rates gave me steady income every month. That cash flow helped cover my expenses and gave me extra money to save or invest.

If you’re thinking about using the BRRRR strategy, I can say it’s a great way to build a rental portfolio over time. But be ready for surprises. Renovations, tenant issues, and financing can be tricky. You need to plan ahead and stay patient.

Still, with the right approach, BRRRR can really work.

Have questions about getting started? Drop a comment or reach out to Ayertime! I’d be happy to share more tips and real-life advice from my experience. Sometimes, one conversation can help you take your first step.

Here are some before pictures: