How to Analyze a BRRRR Deal in New Jersey (Step-by-Step for 2025 Investors)

jesse12385
Jun 30
2 min read

The BRRRR strategy—Buy, Rehab, Rent, Refinance, Repeat—is one of the best ways to build long-term wealth through real estate. But in a tight market like South Jersey, success comes down to analyzing the numbers right from the start.

If you follow Santini Lancioni, you’ve seen how he helps clients spot BRRRR deals in places like Lindenwold, Woodbury, Williamstown, and Blackwood—before they hit the mainstream market. Whether you’re new to the strategy or looking to scale, here’s how to analyze your next BRRRR deal like a pro.

Step 1: Find the Right Property

Look for homes with:

Below-market pricing
Cosmetic or structural repair needs
Comparable sales (ARVs) that justify your renovations
Strong rental demand nearby

Santini often sources off-market deals, estate sales, or distressed homes that check these boxes.

Step 2: Estimate the ARV (After Repair Value)

Use comps in the area to determine what the home will be worth after renovations. This is crucial, as your refinance and profit margin depend on it.

✅ Pro Tip: Look at renovated homes within 0.5–1 mile, sold in the last 6 months, with similar square footage and bed/bath count.

Step 3: Calculate Rehab Costs

Walk the property with a contractor or use rough estimates:

$20–30/sq ft for cosmetic updates
$50–70/sq ft for full gut rehabs
Include new HVAC, roof, electrical, plumbing if needed

Santini works with trusted local contractors and can help you estimate repairs upfront.

Step 4: Run the 70% Rule

A common formula investors use:

(ARV × 0.70) – Rehab Costs = Max Purchase Price

This helps ensure you leave room to refinance your capital back out and still cash flow.

Example: ARV: $250,000 Rehab: $40,000 Max Buy Price = (250K × 0.70) – 40K = $135,000

Step 5: Project Your Rental Income

Check rental comps in the area on Zillow, Rentometer, or through Santini’s investor network. Make sure rent will cover:

Mortgage
Taxes
Insurance
Property management (if applicable)
Repairs and vacancies

This is where DSCR loans come in handy—focusing on rental income, not your personal income.

Step 6: Plan Your Refinance

After 6–12 months, refinance based on the new appraised value. Many investors use DSCR or investor-friendly lenders to pull out 70–80% of the ARV, tax-free.

Be sure your cash-out covers your initial investment—that’s the beauty of the BRRRR.