What changes at the portfolio level once the BRRRR recycle stops working?
A pattern worth studying at the three-house mark. Say each of the three houses leaves something like $22k to $28k behind after the cash-out. Instead of one pool of capital going around a loop, the investor has roughly $75k spread across three properties earning appreciation and amortization and nothing to deploy. The original plan assumed a house a year. At that recovery rate it is a house every twenty months and shrinking. The options are all uncomfortable. Keep buying with fresh outside capital, which changes what the strategy is. Stop at three and hold until refinance costs come down, which means the pipeline of distressed inventory built through relationships goes unused. Or refinance the earliest one again later if rates ease, which is a bet on something nobody can forecast. Is there a structural answer here, or is patience actually the whole answer?
