How I Use the BRRRR Method to Buy Rentals in Spartanburg Without Running Out of Cash

Here's a question I get all the time: "How do you keep buying rental properties without running out of money?" The honest answer is I'm not using a new pile of cash every time. I'm recycling the same dollars, deal after deal, using a strategy called BRRRR.

If you've never heard of it, BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's how I, and a lot of investors here in Upstate South Carolina, go from owning one rental to owning ten without needing ten times the capital. Let me walk you through exactly how it works.

Step 1: Buy — And I Mean Buy Right

This whole strategy falls apart if you overpay, so step one is finding a property well below market value. I'm not talking about a home that's move-in ready with granite counters and fresh paint. I'm talking distressed properties, foreclosures, off-market deals—homes that need real work.

Here in Spartanburg, I still find single-family homes in the $60,000–$100,000 range that fit this bill. And I can't stress this enough: your purchase price is what determines your profit. You make your money when you buy, not when you sell.

Step 2: Rehab — But Only What Adds Value

Once I close, the renovation starts, but I'm not gutting the whole house. I'm putting money into the things that actually move the needle: kitchens, bathrooms, flooring, curb appeal, and HVAC or roof work if it needs it.

The goal is rental-grade quality , good enough to command top rent and appraise well, because that appraisal is everything for the next step.

A tip that's saved me more than once: get your contractor bids before you close. Know your numbers going in. Budget overruns are the number one thing that kills a BRRRR deal, so I always build in a 10–15% contingency on top of whatever the rehab is quoted at.

Step 3: Rent — Get It Cash Flowing

With the rehab done, I find a quality tenant, get a lease signed, and start collecting rent. A renovated 3-bed, 1-bath here in Spartanburg rents anywhere from $1,100 to $1,400 a month right now.

That rent does two things for me: it covers the mortgage, and it shows the lender this is a performing asset, which matters a lot when I go to refinance.

Step 4: Refinance — This Is Where It Gets Fun

Once the property's renovated and rented, I take it to a lender for a cash-out refinance. They appraise it at the new after-repair value (ARV) and typically lend me 70–75% of that number.

If I did everything right up to this point, that refinance gives me back all—or close to all—of my original investment, plus profit. That's my money, back in my pocket, ready to go again.

Step 5: Repeat

Same money, new property, new tenant, new refinance. That's the whole engine behind how I've scaled up without needing a fresh chunk of capital every single time. Meanwhile, every property I already own is paying down its mortgage and appreciating in the background.

Where People Mess This Up

I've seen a few things sink a BRRRR deal more than anything else:

• Overpaying on the purchase. Run your ARV before you ever make an offer.
• Blowing the rehab budget. Always have that 10–15% contingency set aside.
• Getting a bad tenant. A non-paying tenant can wreck your cash flow and your refinance timeline; screen hard, or hand it off to a property manager.
• A low appraisal. Know your comps before you even start the rehab, so there are no surprises.

A Real Deal I Did

Let me show you the actual numbers from a BRRRR deal I closed:

After the refinance, I had my entire $100,000 back, plus $20,000 in profit, and I still own a property that cash flows $550 a month.

Bottom Line

BRRRR absolutely works, but only if you know your market and run your numbers before you ever pull the trigger. If you're thinking about getting into real estate here in Spartanburg and want help analyzing a deal, reach out. I work with investors at every level—from their first door to their tenth—and I'm happy to help.

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