Strategy
The BRRRR method
in Myrtle Beach.
By Devin Day, Operations Officer & licensed MLO · Chapter3 Realty · Updated August 15, 2026
BRRRR recycles one pool of capital across multiple rentals. Here is how the math works in Horry County.
The strategy
The BRRRR method: one sum of cash, reused house after house
BRRRR means buy, rehab, rent, refinance, repeat: one sum of cash, reused house after house. You buy a tired house cheap, fix it, rent it, then refinance to pull your cash back out. The two boxes below give you the ten-second read on whether it fits you.
Why people do it
- +The same cash buys house after house
- +Rent covers the new loan
- +You keep the house and the rent
What can go wrong
- !The house appraises low and your cash stays stuck
- !The rehab runs over budget
- !The rent does not cover the new loan payment
The five steps
How BRRRR works, step by step
- 1
Buy below market. Pay a price that leaves room after repairs.
- 2
Rehab it. Fix what raises the value and the rent.
- 3
Rent it. A signed lease is what the refinance lender wants to see.
- 4
Refinance: pull your cash back out. A new loan on the higher value hands most of your cash back.
- 5
Repeat with the same cash. The money you pulled out buys the next house.
The buy. Aim to keep the purchase price plus rehab budget under 70 to 75 percent of the ARV (what the house will be worth once it is fixed up). That gap is your cushion. On the Grand Strand, dated single-family homes in Conway, Socastee, and Carolina Forest are the usual targets. Year-round tenants keep the rent side steady.
The rehab and the rent. Fix what raises the value and the rent, not a wish list. Once the work is done, a signed lease is what the refinance lender wants to see. Inland areas lease fastest. Demand there comes from workers, hospitals, schools, and Coastal Carolina University, not tourists.
The refinance. The new loan is usually a DSCR cash-out loan: the loan qualifies on the property's rent, not your tax returns. Most lenders cap the cash-out at 75 to 80 percent of the new appraised value. Many also require seasoning (the lender makes you wait a few months before using the new value). Our preferred lender skips seasoning for BRRRR investors, so your cash comes back sooner. See the DSCR loan guide for how the refinance works.
The repeat. If your ARV guess was right, most of your cash is back and the tenant covers the loan. Guess high, and your cash stays stuck in the deal. Run the rent and value numbers through the long-term rental analyzer before you buy.
Let us help with your next investment.
Send us the address. We will run the rent, the expenses and the association documents before you write an offer, at no cost.
Call 854.333.2135Common questions
Frequently asked questions
Does the BRRRR method work in Myrtle Beach?
Yes. It works best on dated single-family homes in inland areas like Conway, Socastee, and Carolina Forest. Year-round tenant demand there supports the rent side. Beachfront condos are harder to BRRRR because HOA rules limit what you can renovate.
What is the 70 percent rule in BRRRR?
It is a guideline. Keep the purchase price plus rehab budget under about 70 to 75 percent of the fixed-up value. That margin is what lets you refinance later and pull most of your cash back out.
How soon can I refinance a BRRRR property?
Many lenders require seasoning, meaning they make you wait a few months before lending on the new value. Our preferred lender does not require seasoning for BRRRR investors, so there is no waiting period. That makes the after-repair value the whole deal. The refinance comes down to what the house appraises for once the work is done. Know the house, its condition, and what similar homes nearby sold for before you buy. That is what protects your cash.
How much cash can I pull out on the refinance?
Cash-out DSCR refinances are typically capped at 75 to 80 percent of the appraised value. Whether you recover all of your cash depends on how accurate your fixed-up value estimate was.
What is the biggest risk with BRRRR?
Guessing the fixed-up value too high. If the house appraises low, the refinance returns less cash and more of your money stays stuck. Model the value and rent before you buy.