The Best Cash-Flowing Markets Are Not the Best BRRRR Markets

A new investor asked me this online today:

“Jorge, what’s the best cash-flowing market for the BRRRR strategy?”

I smiled and thought… ah, we gotta talk.

Because here’s the thing: the best cash-flowing markets are usually terrible BRRRR markets. And the best BRRRR markets? Yeah, they’re often not where you’ll see monster cash flow.

Let’s break this down like we’re talking over cafecito.

What’s BRRRR Again? (Quick Refresher)

BRRRR stands for:

• Buy

• Rehab

• Rent

• Refinance

• Repeat

It’s a strategy that lets you pull out most (or sometimes all) of your original investment once you’ve forced appreciation through renovations.

You make your money on the equity.

Not just the monthly rent.

What’s Cash Flow Then?

Cash flow is your leftover money after all expenses:

• Mortgage

• Taxes

• Insurance

• Property management

• Maintenance

• And the little gremlins that pop up every month and eat your profits

If you’re investing for cash flow, you’re hunting for cheap properties with high rents and stable tenants.

Why These Two Markets Don’t Always Match

Think of it like trying to find a unicorn that’s also a racehorse.

Great BRRRR markets are:

• Places where property values are still rising

• Neighborhoods that benefit from forced appreciation

• Markets where banks love the ARV (After Repair Value)

• Places with strong comp data and investor-friendly appraisers

Great cash-flow markets are:

• Often slower-growth, low-cost areas

• Markets with low purchase prices but also low ARVs

• Places where refinancing is tough because appraisals stay flat

• Areas where $900/month rent on a $40K home feels like a win

So when you ask, “What’s the best cash-flowing BRRRR market?”

That’s like asking, “Where can I buy a Ferrari that’s great on gas?”

You’re mixing two goals: equity velocity vs. monthly income.

A Real Example from My World

Let’s say you find a triplex in a sleepy little Midwestern town for $60K.

Rents are decent. The thing cash flows $600/month even after property management.

Sounds great, right?

But try to BRRRR that thing. Good luck.

You put in $20K in rehab, now you’re in it for $80K—but the bank still sees it as a $65K property. The comps just don’t move.

That’s a cash-flow deal, not a BRRRR deal.

Now take a small house in Tampa. You buy it for $180K, put in $40K, and suddenly it’s worth $300K+ because of the rehab and rising values around it. You refinance and pull out your money.

Cash flow might only be $200–$300/month, but you just created $80K+ in equity.

That’s a BRRRR market.

So What Should a New Investor Do?

Pick your lane based on what you need most right now:

✅ Need to grow fast? Start with BRRRR and stack equity.

✅ Need passive income? Go for cash flow, slow and steady.

Just don’t expect both from the same property.

It’s like wanting your dog to meow and catch mice.

Where I Started: Equity First, Then Cash Flow

Back when I was rebuilding after the crash, I didn’t chase cash flow first.

I chased velocity.

I bought properties using creative financing and BRRRR strategies, recycling the same pile of money over and over again. I was in growth mode. I didn’t care if the rent checks were small—because I was stacking equity and acquiring more doors.

Then, once I had enough equity?

I pivoted. Switched to cash flow mode. Paid off some debt. Held strong performers. Used DSCR loans to buy income machines.

Today I get both—but it didn’t start that way.

Bonus Tip: Don’t Fall in Love with Rent Numbers Alone

I get it. That $1,200 rent on a $60K property looks juicy.

But if:

• There’s no comps

• The appraisal will come in low

• You can’t get your cash out

• You’re stuck with $30K locked in forever…

…you didn’t BRRRR.

You just bought a rental.

That’s not bad! Just know what strategy you’re playing.

Here’s a Visual (Let’s Make It Fun)

Think of your BRRRR markets like race cars.

They go fast, build wealth, but they guzzle gas.

Cash-flow markets?

Those are your minivans. Not flashy, but they get the job done and hold groceries.

You can’t race a minivan and expect to win.

And you wouldn’t take a Ferrari to Costco.

So, Jorge… Where Are the Good BRRRR Markets?

I thought you’d never ask.

Right now, we’re seeing solid BRRRR potential in parts of:

• Central Florida (Tampa, Orlando suburbs)

• Jacksonville (certain zip codes, not all)

• Small cities with rising populations and solid appraisers

We look for:

• Recent comps

• Fixers with strong upside

• Local banks that understand ARV lending

• Neighborhoods with multiple exit options

And the Best Cash-Flow Markets?

You want:

• Lower cost per door

• Less competition

• Stable tenants (working-class or retirees)

• Landlord-friendly laws

• Simple properties with low maintenance

Just know you may not refinance easily—or at all.

What If I Want Both?

Get creative.

Some investors use BRRRR to build equity, then 1031 exchange into cash-flow properties.

Others buy in cash-flow markets and stack slowly, accepting the slower pace.

And some—like me—build hybrid portfolios:

• BRRRR in appreciating cities

• Buy-and-hold in stable cash-flow areas

• Mix in short-term or mid-term rentals for income boosts

• Use DSCR loans to keep scaling without tax returns

Final Thoughts

Real estate is not one-size-fits-all.

But trying to find one magical market that gives you both explosive BRRRR potential and killer cash flow?

That’s a unicorn hunt.

Instead, ask yourself:

• What do I need first—equity or income?

• What’s my timeline?

• How quickly do I want to scale?

And remember—your strategy should always match your season.

BRRRR when you’re hungry for growth.

Cash flow when you’re hungry for freedom.

Just don’t confuse the two.

Keep it consistent, stay patient, stay true—if I did it, so can you. This is Jorge Vazquez, CEO of Graystone Investment Group and all our amazing companies, and Coach at Property Profit Academy. Thanks for tuning in—until the next article, take care and keep building!

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