BRRRR works beautifully on paper. In Miami, it blows up more often—because investors don’t understand seasoning requirements, appraisal reality, insurance volatility, or lender timelines. BRRRR isn’t about buying cheap. It’s about exiting the first loan cleanly and predictably.
Here is the real Miami playbook—minus the fantasy math.
1) The BRRRR Financing Timeline (Reality, Not Instagram)
Phase 1: Acquisition Loan
Most investors use:
- hard money
- private money
- short-term rehab loans
- DSCR-lite bridge loans
Your goal: close fast, keep docs clean, and avoid title or lien issues that complicate the refinance.
Phase 2: Rehab Period
This is where investors sabotage their refinance:
- sloppy contractor payment trails
- commingled funds
- no before/after documentation
- permits not closed
- insurance not updated after renovations
Miami insurance and permitting are slow—build buffer time.
Phase 3: Refi Preparation
Do NOT wait until rehab is finished.
Start lender conversations when:
- scope is 70–80% complete
- comps are identified
- rents are realistic (not fantasy Airbnb numbers)
- inspection issues are resolved
Pro tip: Order the payoff from your acquisition lender early; many take 7–14 days.
Phase 4: Refinance Execution
Choose DSCR or conventional based on:
- rental strategy
- income documentation
- property type
- appraisal support
The refi will live or die on seasoning + value + DSCR/cash flow.
2) The Seasoning Rules That Actually Matter
This is where most investors get trapped. Different lenders have different seasoning requirements for using new appraised value instead of the original purchase price.
A) DSCR Lenders (most common BRRRR route)
Most DSCR lenders require:
- 0–6 months seasoning to use the higher appraised value
- Some require 6 months minimum
- A few require 12 months for large cash-out amounts
If seasoning isn’t met:
- The lender uses your purchase price, not ARV
- The cash-out you expected disappears
- You get stuck in the deal longer than planned
B) Conventional Loans
Fannie/Freddie cash-out seasoning rules are typically:
- 6 months ownership seasoning minimum
- Sometimes 12 months for large increases in value
- Appraisal must support improvements, not speculation
For a true BRRRR, conventional often isn’t the fastest exit unless your documentation is perfect and your property fits agency rules.
C) Portfolio Loans
Portfolio lenders make their own rules:
- Some allow delayed financing exceptions
- Some use ARV with no seasoning, if documentation is airtight
- Some are more conservative than DSCR
Portfolio works when the deal is unusual or DSCR cash flow is borderline.
3) Appraisal Reality in Miami (This is what kills most BRRRR deals)
Miami appraisers lean conservative on:
- Neighborhood boundaries
- Unique rehabs among older stock
- Properties with additions or unpermitted work
- Low inventory of perfect comps
If your ARV depends on:
- custom designer finishes
- short-term rental revenue
- an outlier comp you “just know is right”
…don’t count on underwriting agreeing.
Your appraisal support must show:
- documented renovations (photos, permits, receipts)
- value added, not just cosmetic upgrades
- legal use (illegal duplexes get hammered)
4) DSCR Rules for BRRRR Refi (Cash Flow Matters)
Even if ARV is strong, you still need:
- acceptable DSCR (commonly 1.0–1.2+ depending on lender)
- realistic long-term rents
- STR rents only if lender accepts them (many don’t)
- insurance + taxes + HOA to be fully baked in
Miami insurance has destroyed more BRRRR deals than bad contractors.
Related Post you should include for STR/DSCR income reality:
https://mymiamimortgagebroker.com/dscr-loans-for-short-term-rentals/
5) How to Avoid the “Stuck Refi” Trap
Trap 1: ARV Not Supported
Solution:
- Pull real ARV comps before you buy
- Use an agent, appraiser, or analyst—not Zillow
- Document every stage of rehab
Trap 2: Seasoning Not Met
Solution:
- Choose a lender upfront based on seasoning rules
- Time your rehab to align with the seasoning window
- Don’t assume “every lender uses the same value rules”—they don’t
Trap 3: Insurance Explosion
Solution:
- Get binding quotes early
- If roof/electrical/plumbing/HVAC aren’t updated, plan for 4-point issues
- Budget for higher premiums in Miami
- Understand flood zone risk before you buy
Trap 4: HOA/Condo Kills DSCR
Solution:
- Avoid borderline condos
- Get HOA docs early
- Check rental restrictions
- Confirm assessments
Trap 5: Cash Flow Too Weak
Solution:
- Avoid overpaying
- Lock contractor bids before closing
- Buy in areas with proven rental comps
- Don’t assume STR will be allowed or profitable
Trap 6: Documentation Chaos
Solution:
- Keep receipts + invoices
- Track payment trails (no cash payments)
- Keep before/after photos
- Close all permits
6) The Miami BRRRR Financing Framework
Use DSCR when:
- You want speed
- You’re self-employed
- You don’t want tax-return scrutiny
- Property cash flow is strong
Use Conventional when:
- You want max long-term equity
- Your tax returns are clean
- You’re OK with waiting seasoning
Use Portfolio when:
- Property is unique
- Condo issues block conventional
- You want ARV-based refi without long seasoning
Related Post that complements this:
https://mymiamimortgagebroker.com/how-to-get-a-dscr-loan-for-your-next-rental-property/
Bottom Line
BRRRR in Miami only works if you master:
- Seasoning rules
- Insurance reality
- HOA/condo restrictions
- Appraisal math
- DSCR cash flow
If you ignore one of these, you don’t BRRRR—you get stuck.
