The BRRRR Method in Florida (2026): Does It Still Work — and Where?
What Is the BRRRR Method (Quick Refresher)
Buy a distressed property below market value. Rehab it. Rent it out. Refinance based on the new appraised value. Repeat.
The math works when: ARV − (Purchase + Rehab Costs) > 20% of ARV. That's the equity you need to pull your capital back out on the cash-out refi.
Example that works:
$185,000
$42,000
$227,000
$310,000
$232,500
$232,500 − $227,000 = $5,500
You refinanced 100% of your capital back out — and still own a cash-flowing rental.
Does BRRRR Still Work in Florida in 2026?
Short answer: Yes — but only in specific markets and with disciplined ARV math.
The 2021–2022 run-up created a widespread belief that BRRRR doesn't work anymore — prices are too high, ARV spreads are too thin. That's true in Miami Beach, Brickell, and other trophy markets. It's not true in the working-class submarkets where real BRRRR deals are still being closed.
The key constraint in 2026: rehab costs are 20–35% higher than 2021. Labor is tight. Permits take longer. Materials cost more. Your rehab budget must be conservative — then add 25%. Deals that barely worked in 2021 won't survive 2026 rehab costs.
Best Florida Markets for BRRRR in 2026
Westside, Moncrief, Lake Shore: purchase prices $120k–$180k on properties with ARVs of $200k–$260k. That's the spread BRRRR needs. Navy base + growing logistics sector drives rental demand. Avg monthly rent post-rehab: $1,400–$1,800.
East Tampa and Sulphur Springs still have distressed inventory. Prices softened 10–15% from peak. Buy at $180k, rehab $35k, ARV $280k — the math still works if you find the right deal. The gentrification wave is real and creates appreciation upside.
The most aggressive BRRRR opportunity in South FL. Opa-locka has properties still purchasing below $200k with post-rehab ARVs of $290k–$340k. Higher risk (crime, longer permit timelines), but the spread compensates. Not for first-timers.
South Miami-Dade is one of the fastest-growing submarkets in FL. New warehouse and distribution development is driving population growth. Buy distressed at $180k, rehab $30k, ARV $270k. Rental demand is strong and improving.
The BRRRR Math You Must Run Before Any Offer
Before making an offer on any potential BRRRR deal, you need 5 numbers:
- ARV (After Repair Value) — get 3 recent comps within 0.5 miles, similar size and age, sold in the last 90 days. Average them. This is your ceiling.
- Rehab Cost — walk the property with a contractor. Get a written estimate. Add 25% as your buffer. Never skip this step.
- Max Purchase Price — 75% of ARV minus rehab costs. This is the most you can pay and still pull your money back out on the refi. Non-negotiable.
- Post-Rehab Rent — call 3 property managers in the area. Ask what a rehabbed 3BR in this neighborhood rents for. Use the lowest number.
- Post-Refi Cash Flow — run the stabilized rental analysis after the cash-out refi using today's rates. If it doesn't cash flow after the refi, it's not a BRRRR deal — it's a flip.
Florida BRRRR Red Flags to Avoid
- Coastal properties — insurance doubles or triples post-refi. Your cash flow disappears.
- Miami Beach / Brickell / Coral Gables — ARV spreads too thin. Trophy markets don't BRRRR.
- Properties built before 1960 in Miami-Dade — foundation issues, galvanized plumbing, knob-and-tube wiring. Rehab costs blow up fast.
- Underestimating Miami-Dade permit timelines — structural work requires permits. Plan for 3–6 months. Your carry cost (holding the property during rehab) must be in your budget.
- Using the current tax bill — remember, property tax resets to purchase price × 1.1% at closing in Miami-Dade. Model this in your post-refi cash flow.
Analyze the Stabilized Deal for Free Before You Buy
Once you've rehabbed and rented the property, you need to know: does it cash flow? What's the cap rate? What's the DSCR for the cash-out refi?
SpillDeals analyzes any FL address and shows you the stabilized rental metrics instantly — cap rate, cash flow, DSCR, and an A–F investment grade.
Use it before you make your offer: enter the address and the post-rehab monthly rent you're projecting. Run the DSCR loan scenario. Know whether the deal pencils before you commit a dollar.