Avoid These Costly BRRRR Mistakes & Maximize Your Profits!
The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method is one of the best wealth-building strategies for real estate investors—but small mistakes can lead to major losses if you’re not careful. Before jumping into your next BRRRR deal, make sure you avoid these common pitfalls and set yourself up for success!
Top Mistakes Investors Make With BRRRR Loans & How to Avoid Them:
- Underestimating Rehab Costs – Unexpected repairs always pop up. Add 10-15% to your budget as a buffer. Unexpected expenses, delays, or material price increases, lead to cash flow issues.
Not Accounting for Holding Costs – Mortgage payments, utilities, and property taxes continue even when the home is under renovation. Plan ahead!
Overleveraging the Property – Pulling out too much equity in refinancing may leave you with little-to-no cash flow, making your investment risky if expenses increase. - Refinancing Too Soon – Many lenders require a 3-6 month seasoning period before allowing a cash-out refinance. Make sure you check lender requirements upfront.
- Overpaying for the Property – You win on the buy! Running your numbers accurately ensures your After Repair Value (ARV) supports the deal and leaves you enough equity after refinancing.
- Neglecting to Check for Zoning or Permit Issues – Buying a property that has unpermitted work or zoning restrictions can delay your rehab, prevent future refinancing, or even lead to costly fines.
Avoiding these mistakes is crucial to keeping your cash flow strong and your investments profitable!
Why Smart Investors Choose Tidal Loans for BRRRR Financing
At Tidal Loans, we specialize in fast and flexible financing solutions built specifically for BRRRR investors like you. Whether you need a short-term bridge loan for the rehab phase or a long-term DSCR loan to refinance into a rental, we have the funding solutions to match your goals.
- We Understand BRRRR – Our loan programs are structured to fit the BRRRR strategy seamlessly.
- Quick Closings – Stop waiting around for slow approvals! We move fast so you don’t lose deals.
- Flexible Terms – Whether you need low money down, high leverage, or longer-term financing, we’ve got you covered.
Are You Ready to Scale Your Portfolio?
The BRRRR strategy only works if your financing is solid—and that’s where we come in. Tidal Loans is here to help you maximize your returns, avoid costly mistakes, and keep scaling your investments faster than ever.
Click below to apply now to speak with one of our experts!
Tidal Loans – Your BRRRR Financing Experts!
KEY POINTS ON OUR DSCR LOAN PROGRAM
- APPROVAL: Based on the property cash flow, instead of your personal income.
- NO ORIGINATION POINTS: Loan options without any origination points.
- UNOCCUPIED REFINANCE ALLOWED: No Tenant, No Problem.
- SHORT TERM RENTALS: We can use the short-term rental market rates instead of traditional market rates.
- No DSCR MINIMUM: No DSCR Minimum. ( The lower the DSCR, the higher the rate )
- NO MINIMUM CREDIT REQUIREMENT: No Minimum Fico ( The lower the FICO the higher the rate )
- FOREIGN NATIONALS: Foreign nationals are welcome. We will require an LTV haircut and more reserves.
- INTEREST ONLY OPTION: Maximize cash flow today. Enjoy 10 years interest only, remaining 20 years amortized at the same rate. No rate surprises! Unlike an ARM, where your rate can potentially increase after the I/O period.
- COMPETITIVE RATES: Competitive to-market
- NON-WARRANTABLE CONDOS: Allowed, at max 75% LTV
- RURAL PROPERTIES: Are okay, max 75% LTV
Let us know how we can assist you in securing your next rental property or refinance!