How do weekly labor draws work for rehab projects?

We quote your full project price upfront. Instead of paying 30-50% as a deposit, you pay weekly as labor progresses. Each payment is credited toward your project total. Draws start at $4k/week for smaller projects and scale with project size. Materials are separate: we provide detailed lists and you purchase directly, so you control the spend.

Is SLH a project manager or contractor?

We're the licensed general contractor. Our crews do the work: demo, framing, plumbing, electrical, finishes, everything. We're not a middleman coordinating other contractors.

Why do investors purchase materials separately?

Transparency. Traditional contractors mark up materials or bundle them so you can't see what you're paying. We provide detailed material lists with quantities and timing. You buy directly from suppliers at cost. No hidden markup, full visibility.

What payment methods do you accept for rehab projects?

The $150 scope fee can be paid by credit card. All other payments (weekly labor draws, final balances) are wire transfer, check, or cash only. No credit cards for project payments.

How do I qualify for Portfolio Partner pricing?

You qualify with either 3 or more concurrent projects OR a commitment to 5+ projects per year. This gives you 10% off weekly labor draw rates plus priority scheduling and included pre-acquisition estimates.

Do you handle permits for rehab projects?

Yes, as an add-on service. We manage the entire permit process including applications, coordinating inspections, and maintaining documentation. Permit fees are passed through at cost.

How is a BRRRR rehab different from a flip rehab?

You are rehabbing for the appraiser and the tenant, not the buyer. Materials need more durability. Over-improvement risk is higher because every dollar over appraised value is stuck in the deal. Timeline matters because lost rent adds up.

How do I control rehab costs on a BRRRR deal?

Weekly draws for real-time budget tracking, separate labor from materials to eliminate markup, spec for the appraiser checkboxes rather than design trends, and use a detailed scope of work that ties to your refinance numbers.

What finish level should I target for a BRRRR?

Durable flip-grade. Mid-range LVP, granite or quartz counters, Shaker cabinets, semi-gloss paint on high-touch surfaces. Good enough to appraise well and stand up to tenant use.

What is included in the $150 scope visit?

Full walkthrough, scope of work designed for BRRRR deal math, cost breakdown, timeline, and weekly draw schedule. We spec for maximum appraised value at minimum cost.

How do weekly draws help BRRRR investors specifically?

Every dollar of rehab overrun is a dollar stuck in the deal at refinance. Weekly draws track spend vs. budget every week so you catch overruns early enough to adjust.

BRRRR Strategy Rehab: Execute Without Losing Your Shirt

The BRRRR strategy looks great on a whiteboard. Buy, Rehab, Rent, Refinance, Repeat. Clean, simple, profitable. Then you get to the Rehab part and everything falls apart because your contractor took your money and remodeled on his own timeline.

The rehab phase is where BRRRR deals live or die. Here's how to execute it without losing your shirt.

Why BRRRR Rehabs Are Different From Flips

On a flip, you're rehabbing for the buyer. On a BRRRR, you're rehabbing for the appraiser and the tenant. That changes several things:

Material choices. Flip-grade LVP works for both. But BRRRR properties need durability because tenants are harder on finishes than homeowners. Skip the cheapest option and go mid-grade for longevity.

Over-improvement risk. Even more dangerous on BRRRR than on flips. Every dollar over the appraised value at refinance is money you can't pull back out. And every dollar over what the rental market supports in rent is wasted.

Timeline pressure. Every week the property isn't rented is lost rental income on top of holding costs. A 4-week delay on a $1,500/month rental costs you $1,500 in lost rent plus holding costs.

The BRRRR Math on Rehab

The refinance determines whether your BRRRR worked. Let's say:

Purchase: $120K
Rehab: $35K
Total invested: $155K
Target appraised value: $195K
Refinance at 75% LTV: $146,250
Cash left in deal: $155K - $146,250 = $8,750

If the rehab goes to $50K:

Total invested: $170K
Refinance still at $146,250 (appraised value didn't change)
Cash left in deal: $170K - $146,250 = $23,750

That extra $15K in rehab costs left an extra $15K stuck in the deal. Your return on equity just got crushed. This is why BRRRR rehab budgets have zero room for overruns.

Execution Strategies

1. Scope for the appraiser, not for Instagram. The appraiser cares about: functional kitchen, updated bathrooms, good condition systems, clean finishes. They don't care about designer tile patterns or custom lighting. Hit the appraiser's checkboxes efficiently.

2. Use weekly draws for budget control. On a BRRRR, every dollar of rehab overrun is a dollar stuck in the deal. Weekly draws track actual spend vs. budget every week. You catch overruns in Week 2, not Week 8.

3. Separate labor from materials. Buy materials yourself to control costs. Every dollar of contractor markup is a dollar stuck in the deal at refinance.

4. Build for tenants. LVP over hardwood (scratch-resistant). Semi-gloss paint on trim and doors (wipeable). Commercial-grade fixtures (replaceable parts). Think about maintenance costs over the next 5 years.

The Seller's Little Helpers BRRRR Advantage

We understand BRRRR deal math. Our scope visits spec materials and finishes to maximize appraised value while minimizing rehab spend. We're not trying to win a design award. We're trying to get you your money back at refinance.

Weekly draws, separated labor and materials, and a scope built for appraisal value. That's how BRRRR rehabs should run.

Book a $150 scope visit at sellerslittlehelpers.com - we'll scope your BRRRR rehab to maximize appraised value and minimize cash left in the deal. Call (708) 536-6700 or email info@sellerslittlehelpers.com.

BRRRR Strategy Rehab: How to Execute the Renovation Phase Without Losing Your Shirt