I scroll social media just like you do. I see the guys in front of the whiteboards promising “No Money Down” or “Seller-Funded Renovations” using some obscure credit trick.
I’ve been brokering deals and running STRs for over 15 years, so let me save you some trouble. If you have to hide what you’re doing from the underwriter, it’s not a strategy. It’s fraud.
But I get the appeal. You want leverage. You want to buy a property for pennies on the dollar, create equity out of thin air, and get your cash back so you can do it again.
You don’t need a loophole to do that. You just need the BRRRR strategy.
It’s not new. It’s not a “hack.” But it’s the only legitimate way to scale a portfolio without running out of cash.
The Difference Between “Creative” and “Criminal”
The “Seller Credit” tricks relies on fake value. You’re asking the bank to lend you money on a pool that doesn’t exist yet, hoping they don’t notice.
BRRRR (Buy, Rehab, Rent, Refinance, Repeat) relies on forced value. You buy a beat-up property, you actually do the work, and then you ask the bank to appraise it.
Because the value is real, the bank cuts you a check. No side deals, no hiding, no stress.
How We Actually Do This
If you’re new to the game, here is the roadmap. This is how the big portfolios in Texas get built.
1. Buy the Ugly House Stop looking for turnkey STRs. You want the house with the bad roof, the outdated kitchen, and the motivated seller. You want the house that scares the retail buyers away. That is where the margin is.
2. Rehab for Revenue This is where you force the appreciation. You use cash, a HELOC, or Hard Money to fix it up. But for STRs, we aren’t just painting walls. We are adding the stuff that drives nightly rates—hot tubs, fire pits, modern design.
You spend $50k to add $100k in value. That spread is your net worth.
3. Rent It Out Get it on Airbnb. Get the revenue flowing. Most lenders want to see “seasoning” (usually 6 months) before they touch it. While you wait, you’re collecting high STR cash flow.
4. The Refinance This is the payday. You go to a bank for a long-term loan. The appraiser looks at the new value. The bank lends you 75% of that higher number. You use that cash to pay off your original purchase and rehab costs.
5. Repeat If you bought right and managed the rehab well, you have your original capital back in your pocket, but you still own the cash-flowing house. Take that money and go buy the next one.
Why I Push This Strategy
I love working with BRRRR investors. They aren’t emotional. They don’t care about the paint color; they care about the numbers.
- You Buy Deeper: We can make aggressive offers on properties that have been sitting on the MLS for 60 days.
- You Create Inventory: In a tight market, we stop waiting for the perfect house to list and we just build it ourselves.
- It’s Scalable: The “Seller Credit” trick works once before a lender flags you. BRRRR works forever.
It’s Not All Sunshine
I won’t lie to you—this is hard work.
You need access to cash or hard money up front. You have to manage contractors, which is a job in itself. And you run the risk that the appraisal comes in low.
But that’s the price of admission.
Don’t try to “hack” your way to wealth by fudging numbers on a HUD statement. It’s sloppy and it’s dangerous. If you want to play in the big leagues, learn to spot value where others see a mess.
Let’s find a property with good bones and bad carpet, and force the appreciation ourselves.
About the Author Ed Neuhaus is a Real Estate Broker and Investor with 15+ years of experience in the Texas Hill Country. He specializes in sourcing off-market deals for STR investors and operates his own portfolio of vacation rentals. He built his business on data, transparency, and actionable strategies—no fluff, just ROI.
