Are You Finding That BRRRR in Florida?

Let’s talk about the BRRRR strategy in Florida. And no, we’re not talking about the cold—we’re talking about Buy, Rehab, Rent, Refinance, Repeat. This method helped us build long-term wealth and still powers most of our investors’ portfolios today.

Now, you’ve probably heard some chatter lately:
“Is BRRRR still working?”
“Isn’t flipping faster?”
“Florida’s too hot right now—there are no deals!”

Here’s the deal: BRRRRs still work. They just require a smarter approach—and we’re here to break that down for you.

BRRRR in Florida: Still Strong in 2025

Jay Michalec, COO of Graystone Investment Group, said it best:

“Yes—BRRRRs are still working great for us. In fact, most of our investors are still using this strategy. While flipping might look more profitable in the short term, BRRRRs are winning long-term because rents are creeping back up toward that sweet 1% rule. We’re still picking up properties with built-in equity and adding forced equity through rehab.”

Let’s be honest—BRRRR isn’t about flashy results. It’s about smart plays and repeatable wins. It’s the long game. That’s how you build wealth that sticks.

Breaking Down the Numbers

We’re often asked to compare flipping to BRRRR. Let’s walk through it with some simple numbers:

Flip Example:

• Buy at $200K

• Put in $100K rehab

• ARV is $400K

• After closing costs, fees, and commissions—you might walk with $50K

BRRRR Example:

• Buy at $200K

• Put in $50K rehab

• All-in at $250K

• ARV is $350K

• Cash-out refinance lets you tap into 85% of the $100K equity

• You pull out maybe $35K cash and still own the property

• Now you’re collecting rent, building passive income, and enjoying tax perks

Here’s the kicker: you didn’t give up the asset. That’s the power move.

What We Look for: Timing and Location

We don’t chase the trendy, fully-gentrified areas. That’s not where the velocity is. We target what we call the “high end of the low-end neighborhoods.” These are places that still have affordable entry points but show signs of growth.

Jay and I are constantly studying Tampa and surrounding markets. Here’s what we keep an eye on:

1. Rehabs and New Builds

When we see dumpsters in driveways and brand-new roofs going up, it tells us investors are placing bets on that block.

2. Commercial Shifts

A run-down gas station closing or a brand-new Starbucks being built? That’s a signal that developers believe in the neighborhood’s future.

3. Rent Increases

If rents are steadily rising, that’s our green light. You don’t need perfection—you need upward momentum.

4. Zoning and Planning

We keep tabs on rezoning and redevelopment plans. If the city’s investing, we should be too.

Why We’re Not in a Rush

You’ll hear people say BRRRRs feel “slow” right now. But what they really mean is they’re not flipping fast profits. Here’s why we’re still confident:

• Rents are back on the rise.

• Inventory is still tight.

• We’re still finding properties with built-in equity.

Even if interest rates are higher, the math can still work. Lock in now, refinance again later when rates drop, and in the meantime—you’re holding onto appreciating assets.

Avoid These BRRRR Traps

Here are some common mistakes we help investors avoid:

• Buying in fully gentrified areas – You’ll overpay and kill your upside.

• Over-rehabbing – Stick to functional improvements. No need for gold-plated fixtures.

• Skipping the rent analysis – If it doesn’t cash flow at refinance, it’s not a BRRRR—it’s a bad flip.

We use what we call “Tonka thinking”—meaning we keep it strong and simple. No over-fixes. Just solid improvements that create real value.

The 5- to 7-Year Play

When we do a BRRRR, we’re playing the two-wave equity game:

1. First wave: We create equity immediately through rehab.

2. Second wave: Over the next 5–7 years, the neighborhood improves, rents go up, and values rise again.

That’s how we win twice. Most people are too busy chasing short-term profits and miss the second (and usually bigger) wave.

Funding Your BRRRR in Florida

Jay and I have helped hundreds of investors get their BRRRRs funded—even in today’s market. Here’s what we use:

1. DSCR Loans

Debt Service Coverage Ratio loans look at the property’s income, not your job or W2. That’s a game-changer for investors.

2. Private Lenders

Plenty of money out there if you’ve got the right deal. Build your network and bring value.

3. Joint Ventures

We see this a lot now—partner with someone who brings capital, while you bring the deal and hustle.

Tax Advantages: A Hidden BRRRR Bonus

Let’s not forget one of BRRRR’s biggest perks: tax benefits. You get:

• Depreciation

• Interest deductions

• Cost segregation opportunities

• Lower capital gains (if you sell later)

• Cash flow that can offset other income

Flips are taxed like regular income. BRRRRs give you more tools to legally keep more of your money.

BRRRR and Property Management: Why It Matters

You can’t just buy the property and walk away. Long-term success with BRRRR depends on strong property management. That means:

• Screening the right tenants

• Pricing rents accurately

• Staying on top of maintenance

• Keeping vacancy rates low

At Graystone Property Management, we manage hundreds of doors. We treat each one like it’s our own—because we’re landlords too. If you want BRRRR to work, you need your backend system to be just as strong as your acquisition game.

Why Do Some People Aim for 100% Return?

The idea of getting 100% of your money back after refinancing sounds fantastic. If you could get all your original investment back every time, you’d be ready to reinvest without adding more cash. Some folks treat this like the holy grail of investing—but we’ve seen where that thinking can go wrong.

Sometimes, in the chase for that perfect number, investors cut corners or overestimate values. That’s risky. Instead, we tell our investors that BRRRR works best when it’s sustainable, not magical. Getting back 70–85% on a consistent basis, while building equity and income, often outperforms the rare 100% home run.

We go deeper into this topic in our internal article: 100% Return in BRRRR Isn’t Always a Good Idea. Give it a read if you’re looking to balance your expectations and avoid the trap of over-leveraging.

From Zero to 32 Properties: How I Got Started

Let me bring it full circle. I didn’t start with millions or a portfolio handed to me. I started with house hacking—buying a duplex, living in one side, renting the other. From there, I used rental income to cover my costs, refinanced once the property had equity, pulled cash out, and repeated the process.

The key? Every deal had to pass my personal property stress test. That meant it had to cash flow, even if interest rates ticked up or a tenant moved out. If it didn’t hit that minimum threshold, I walked away. That discipline allowed me to scale without overleveraging—and it’s the same principle I teach others now.

If you want to learn more about how I went from broke to 30+ houses, check out this article: Broke to 30 Houses: My House Hacking Journey in Tampa. It’ll give you a look behind the scenes at the mindset and math that built everything I have today.

The BRRRR Mindset in 2025

This isn’t 2019 anymore. The market’s different. Lenders are stricter. Deals are more competitive. But we’re not in the game for fast flips or fantasy returns.

We’re in this to build portfolios, create generational wealth, and earn real cash flow over time.

That means:

• Being patient

• Watching the market like a hawk

• Acting fast when a good deal comes up

• Not falling in love with a property—let the math decide

Jay & Jorge

Final Thoughts From Jorge & Jay

Jorge: If I could start all over again, I’d still choose BRRRR. It builds wealth slowly but surely. I’ve bought over 30 properties using this method and helped hundreds do the same.

Jay: BRRRRs are evolving, but they’re not going anywhere. In a tight market, you have to be sharper. Know your numbers. Choose the right neighborhoods. And don’t skip the rent comps.

At Graystone, we’re still using BRRRR every day. It’s not outdated—it’s just grown up. And if you do it right, it still beats almost everything else.

Written by Jorge Vazquez, CEO of Graystone Investment Group & companies, and Jay Michalec, COO of Graystone Investment Group
Coaches at the Property Profit Academy
http://propertyprofitacademy.com

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✔ Build a $10M portfolio step by step.
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Meet our Team of Experts!

My team and I bring over 20 years of real estate experience, with deep roots in Florida’s investment scene. As a licensed MLO, I’ve helped close millions in loans and investor acquisitions. We’ve built strong relationships with wholesalers, probate attorneys, and sellers to source real deals—not just listings. My goal is simple: align your investments with your vision and deliver results that exceed expectations. Connect with Cody at https://graystoneig.com/cody

Hi, I’m Lisa-Kaye Price, Real Estate Lending Specialist at Graystone Investment Group. With 20 years of experience as both a licensed Realtor® and Mortgage Loan Originator, I specialize in helping investors secure smart financing for powerful real estate moves. Let’s connect and talk strategy! Connect with Lisa at https://graystoneig.com/lisa-kaye-price

Jay Michalec is the COO of Graystone Investment Group and a proud U.S. Army veteran. With 25 years in hospitality, Jay brings leadership, service, and operational excellence to real estate. He’s known for keeping things running smoothly and supporting both the team and clients every step of the way. 📅 Connect with Jay: https://graystoneig.com/jay