BRRRR in Hampton Roads: Does It Still Work in 2026?
Rates are high, rents are steady, and competition is lower than peak. Here's an honest look at whether the BRRRR strategy still pencils in Hampton Roads.
BRRRR (Buy, Rehab, Rent, Refinance, Repeat) had a golden era from 2019 to 2022. Then rates doubled and everyone declared it dead. Is it?
The honest answer: it depends on your entry point.
With a 7–8% refinance rate, the numbers only work if you buy right. That means acquisition at or below your MAO and a rehab that maximizes rent per dollar spent. The days of buying at 80% of ARV and refinancing at par are over — you need to be at 65–70% to make the refi work without bringing money back to the table.
Where Hampton Roads has an edge
Rent-to-price ratios in Hampton Roads are genuinely favorable compared to most East Coast markets. A $180K acquisition on a 3/1 in Norfolk can rent for $1,600–$1,800. A $220K rehabbed value produces a 1% rule property — which, while not the benchmark it once was, still produces positive cash flow at 7.5% after a 75% LTV cash-out refi.
The deals that work
Focus on properties where: - You can acquire below $170K - Rehab is under $35K (cosmetic + systems, not gut) - Projected rent is $1,500+ - ARV supports a 75% LTV refi above your all-in cost
That combination exists in Norfolk, Portsmouth, and parts of Hampton. It's not everywhere, but it's there.
The deals that don't work
Anything that requires a full gut rehab in today's contractor market will struggle to pencil. Labor costs are up 40% from 2020. If your rehab budget is $60K+, run the flip scenario instead.
Deal Sherpa's BRRRR calculator shows you the cash-on-cash and refi waterfall on every listing in real time.