When it comes to the best markets for the BRRRR Strategy in 2025, investors have to evaluate multiple factors. If you’re considering the BRRRR Method (Buy, Renovate, Rent, Refinance, Repeat) in 2025, you’re in luck! As one of the top providers of BRRRR Loans in the United States, uniquely positioned as both a hard money lender to cover buying and rehab financing and a DSCR lender to cover the all-important BRRRR method refinances, we see where investors have had the most success and where the top BRRRR strategy borrowers are targeting for 2025. Here are our top markets for BRRRR investors in 2025:
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Indianapolis, IN
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San Antonio, TX
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Kansas City, MO
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Jacksonville, FL
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Charlotte, NC
Important Factors to Consider when picking a market for the BRRRR Method
When choosing a BRRRR market in 2025, prioritize areas with strong population growth and high rental demand. Markets with 1.5% or higher annual population growth typically foster BRRRR success by driving rental demand and property appreciation. Strong rental markets with 3-5% rent growth and under 5% vacancy ensure properties stay cash-flow positive after refinancing. Additionally, markets achieving the 1% rule (monthly rent equals 1% of purchase price) provide investors strong profitability opportunities. This ensures they can maintain profitability while expanding their portfolios effectively.
Equally important are landlord-friendly laws and affordable renovation costs, which directly impact BRRRR strategy success. States with landlord-friendly laws, such as quick eviction processes (< 30 days) and minimal rent control, support consistent cash flow. Markets with renovation costs 20-30% below national averages allow investors to complete extensive improvements within budget. This creates larger spreads between purchase-plus-renovation costs and after-repair values (ARV). Strong landlord protections and affordable renovations help BRRRR investors maximize returns while minimizing risks throughout each phase of the strategy.
Balancing all of the above factors can be a challenge, but we done the research, and combined with our insights as the top BRRRR Lender in the country, see the following markets as the best markets for BRRRR investors in 2025.
One caveat before diving in: the BRRRR method can succeed in almost any market with the right approach. Success often depends on local market knowledge, securing great deals, and having a strong “Core 4” team to support the investment. If your favorite market isn’t listed, don’t worry. However, for BRRRR beginners, the cities below might be the best places to start.
Top 5 Markets for BRRRR Strategy Real Estate Investing in 2025
Number 1: Indianapolis, Indiana
Indiana’s landlord-tenant laws favor property owners, making Indianapolis ideal for BRRRR investors. The state offers quick eviction processes, typically 2-4 weeks, compared to several months in more tenant-friendly states. Property owners have strong rights regarding security deposit retention, lease termination, and property access, helping protect profits over the long term.
Renovation costs in Indianapolis provide a significant advantage for BRRRR investors. Labor costs are 20-30% lower than coastal markets, with skilled contractors charging $25-35 per hour, compared to $40-60 in larger cities. Building materials are reasonably priced due to the city’s central location and robust distribution networks, with local suppliers offering competitive pricing and consistent availability. These lower costs directly impact the forced appreciation needed for BRRRR method.
Financial and quantitative metrics further strengthen Indianapolis as a top BRRRR market in 2025. According to BiggerPockets, key indicators include:
- A strong labor market with a 3.7% unemployment rate and $73,571 median household income as of late 2024
- A population over 2.1 million and annual population growth rate near 1%
- While the above numbers typically indicate high prices and low cash flows indicative of major, thriving metros, Indianapolis only reports a medium home price of $276,494, showing very affordable entry points for real estate investors, especially for the fixer uppers
Indianapolis also stands out as a top market to target for BRRRR investors due to its 48-year average age of housing stock and approximately 35% of homes built before 1960, creating abundant opportunities for value-add investments.
Distressed properties in Indianapolis typically sell at compelling discounts of 15-25% below market value, with foreclosure properties offering even deeper discounts averaging 28% below market prices.
The Near Eastside neighborhood, featuring homes averaging 75+ years old, offers exceptional opportunities with purchase prices ranging from $85,000-$150,000 and typical ARVs of $160,000-$225,000 after renovations costing $30,000-$50,000. The historic Fountain Square/Fletcher Place district presents another prime opportunity, with 80+ year-old properties selling for $120,000-$200,000 and reaching ARVs of $250,000-$350,000 after renovations, while the emerging Riverside area offers similar potential with 65-year-old properties typically selling for $90,000-$180,000 and achieving ARVs of $180,000-$275,000 post-renovation.
These neighborhoods’ combination of aging housing stock, significant price discounts, and strong ARV potential makes Indianapolis an ideal market for implementing the BRRRR strategy in 2025.
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Number 2: San Antonio, Texas
San Antonio also stands out as one of the most attractive markets for BRRRR in 2025. The Texas powerhouse city offers a compelling combination of landlord-friendly legislation, strong rent-to-price ratios, and affordable renovation costs supported by robust economic growth.
Texas’s landlord-tenant laws significantly favor property owners, making San Antonio an ideal market for BRRRR investors. The state allows for quick eviction processes, typically taking just 3-4 weeks when properly executed, compared to several months in more tenant-friendly states. Property owners have strong rights regarding security deposit retention, lease termination, and property access, crucial to protect against profit-eating costs over the long haul. Additionally, Texas’s lack of state income tax helps investors maximize their returns.
Like Indianapolis, San Antonio similarly, according to BiggerPockets market data, combines all of the attractive aspects of large market investing (large population over 2.5 million, robust population growth rate of 1.64% and strong diversified economy with a top median household income of nearly $71,000 – all of which provide a large and strong tenant base) with low cost price points in the oft-overlooked middle of the country, with both costs to purchase and renovation costs (including materials and labor) much lower than similarly sized markets along the coasts.
San Antonio’s warm Texas climate provides a distinct advantage for BRRRR investors, allowing year-round project completion. Investors don’t need to break for wintry weather or hurricane seasons like in other areas.
Some neighborhoods in San Antonio offer great BRRRR investment potential. These include the Dignowity Hill, Government Hill, and Denver Heights areas. Each neighborhood provides opportunities for distressed properties, aged housing stock, and profitable returns. Investors can rejuvenate rental housing in communities that need it most.
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Number 3: Kansas City, Missouri
Unlike the traditional coastal markets or sunbelt cities, Kansas City emerges as a unique opportunity for BRRRR investors in 2025. The city’s combination of Midwestern stability and urban revitalization creates an ideal environment for value-add real estate strategies. With major employers like Cerner, H&R Block, and the federal government providing stable employment, the fundamentals support long-term growth while maintaining affordability
Kansas City’s real estate market offers the following key quantitative metrics (as of November 2024) for BRRRR investors, scoring highly across the board on the key considerations of value and rental demand.
- Median home prices at $285,000 (40% below national average)
- Rental rates averaging $1,400 for 3-bedroom homes
- Property taxes averaging 1.15% (competitive for a major metro)
- Average days on market: 45 days (indicating good liquidity)
Average rehab costs in Kansas City are 25% below the national average, making many BRRRR Calculators turn green. Unlike many markets where labor shortages drive up costs, Kansas City maintains strong contractor availability with 1-2 week lead times. Average renovation costs range from $35-45 per square foot, fitting into most BRRRR budgets. With a strong network of wholesale suppliers and historic preservation tax credits, Kansas City is a top BRRRR market in 2025.
Looking for neighborhoods in Kansas City? The East Crossroads area offers solid investment opportunities with a revitalized economy. The nearby suburb of Raytown is popular with investors due to affordable price points and strong ARVs.
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Number 4: Jacksonville, Florida
The first city on the list not in America’s heartland, typically favored by BRRRR investors due to low costs and investor-friendly climates, Jacksonville, located on east coast can also offer outsized returns for the BRRRR Strategy in 2025.
Jacksonville sets itself apart from other Florida markets with a unique combination of:
- Population growth rate of 2.1% (nearly double the national average)
- Median home price of $325,000 (significantly below Miami/Tampa)
- Strong military presence providing stable rental demand
- No state income tax enhancing investor returns
- Third-largest port on East Coast driving economic growth
For investors looking to target the Sunshine State but are concerned with the recent hurricane damage, increasing insurance costs and weather related risk factors, Jacksonville offers generally leads the way with strong hurricane codes, a well-established network of licensed contractors familiar with code requirements and renovation premiums typically15-20% lower than South Florida. Located well north of the typically hurricane hard-hit regions, it’s a great alternative for Florida-focused investors looking to minimize risk.
Additionally, Jacksonville not only offers investors strong opportunities for the traditional BRRRR method, but is also a tailor-made market for “AirBnBRRRR” – a strategy in which the BRRRR strategy is combined with the lucrative short term rentals strategy. Particularly in beachfront areas like Jacksonville Beach and Neptune Beach, investors that can find distressed properties and turn them into tailored dream vacation rentals are likely to reap rewards in 2025!
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Number 5: Charlotte, North Carolina
Charlotte is a leading market for BRRRR strategy in 2025, driven by its position as the second-largest banking center. It is also rapidly growing as a tech hub. With annual population growth of 2.4% and a median age of 34.3 years, Charlotte has a strong pool of qualified renters and appreciation potential. Major employers like Bank of America, Wells Fargo, Truist, and Honeywell drive job growth. The tech sector shows 11.3% annual job growth, with average salaries around $96,000.
Charlotte stands out for BRRRR investors due to its combination of affordability and growth potential. The median home price is $375,000, offering accessible entry points. Strong rental demand ensures healthy cash flow. Renovation costs are favorable, with kitchen remodels ranging from $25,000-$35,000 and bathroom renovations from $12,000-$18,000. These costs, combined with strong appreciation, allow for significant forced equity through strategic improvements.
Charlotte’s neighborhoods provide various opportunities for BRRRR investors. Plaza Midwood, with 1940s-1950s homes, offers purchase prices of $325,000-$425,000 and post-renovation values of $525,000-$650,000. NoDa, an arts district, offers similar opportunities with prices ranging from $300,000-$400,000 and post-renovation values of $500,000-$600,000. West Charlotte provides affordable options with prices from $200,000-$275,000 and post-renovation values of $350,000-$425,000.
Charlotte’s financial metrics are attractive for BRRRR investors. Monthly rents for renovated 3-bedroom homes range from $1,900-$2,400. Operating expenses are about 42% of rent. Investors can expect cash-on-cash returns between 6-9% and annual appreciation of 7-9%. The city’s expanding light rail system, airport growth, and completion of I-485 create new opportunity zones. Properties near light rail corridors show 15-20% higher appreciation rates.
Additionally, Charlotte is a great market for short term rentals and thus the “AirBnBRRRR” strategy as well. Check out our comprehensive guide to short term rental investing in Charlotte, North Carolina for more details!
Ready to Get Started?
Have you determined the best cities for the BRRRR Method in 2025 for your investing strategy? Ready to use the BRRRR Strategy to build generational wealth through real estate? Easy Street Capital is America’s best lender for BRRRR Loans!
Disclaimer: The information provided in this article is not intended as financial or legal advice of any kind. Regulations regarding short-term rentals are subject to change and all investments are subject to risk. Information included in this article may contain information that has not been verified by licensed attorneys and should be subject to independent verification. Readers are advised to consult with qualified legal or financial professionals prior to investing in real estate investment properties.
About the Author
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