For the last decade, the BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat) was the holy grail of real estate investing. You could buy a fixer-upper in Wilmington, renovate it, rent it out, and then refinance to pull 100% of your cash back out to do it again.

But in late 2025, the "infinite return" math has changed.

High interest rates, stabilizing rents, and a massive spike in coastal insurance premiums have turned the "perfect BRRRR" into a moving target. Does it still work in New Hanover, Pender, and Brunswick counties? Yes—but only if you adjust your expectations and your underwriting.

Here is the 2025 reality check for every step of the BRRRR cycle in our coastal market.

1. BUY: The "Distress" Drought

The Old Days: You could find foreclosures on the MLS daily.

The 2025 Reality: Our market is "Balanced," not crashed.

Inventory Check: As of late 2025, Brunswick County showed only ~14 active foreclosure listings, and Pender County hovered around 30. The flood of cheap deals simply isn't there.

The Pivot: You can't rely on banks giving houses away. You must look for "Value-Add" rather than "Total Gut." Look for homes in Castle Hayne or Leland with good bones but cosmetic failures (dated 1990s kitchens, carpet in bathrooms) where you can force appreciation without a structural overhaul.

2. REHAB: The Cost of Labor

The Math: In 2025, a "basic" renovation costs significantly more than it did in 2022.

Kitchens: The average mid-range kitchen remodel in Wilmington is now $21,000 – $40,000.

Roofs: An asphalt shingle roof replacement averages $10,000 – $15,000.

The Risk: Labor shortages are acute. If you budget $30k for a rehab and it turns into $50k because you had to hire a premium contractor to get it done on time, your entire refinance strategy (the third "R") collapses.

3. RENT: The Cash Flow Squeeze

The Stabilization: Rents have flattened. A 1-bedroom in Wilmington averages ~$1,495/month, and overall rents are stable year-over-year. You cannot bank on "double-digit rent growth" to save a bad deal.

The "Silent Killer" (Insurance): This is the most critical variable for 2025.

The NC Rate Bureau has requested a massive 68.3% rate hike for dwelling policies (landlord insurance) to be phased in starting mid-2026.

Action: You must underwrite your deal with a 25% insurance buffer. If a deal barely cash flows today, it will be negative in 2027 when those new premiums hit.

4. REFINANCE: The "75%" Ceiling

This is where the "infinite return" dream often hits a wall.

Rates: Investment property cash-out refinance rates in late 2025 are hovering in the 7.0% – 7.75% range.

LTV Limits: Lenders are conservative. Most will only lend up to 70% or 75% Loan-to-Value (LTV) on a cash-out refi.

The Consequence: If you are "all in" for $200k and the home appraises for $250k, a 75% loan gives you $187,500. You are leaving $12,500 of your own cash in the deal.

The Verdict: The "Perfect BRRRR" (getting every penny back) is rare. In 2025, it is more likely a "Low-Money-Down" strategy where you leave 5–10% of your capital in the property.

5. REPEAT: Quality Over Quantity

In 2025, the goal isn't to buy 10 houses a year; it's to buy 2 good ones that don't keep you up at night.

The Strategy: Focus on B-Class neighborhoods (like Ogden or Murrayville) where tenant quality is high and turnover is low. Avoid the "D-Class" war zones where on-paper returns look high but actual collections are low.

The Bottom Line

The BRRRR method isn't dead; it has just matured. It is no longer a "get rich quick" scheme—it is a slow, methodical wealth-building tool.

At Aspyre Realty Group, we help investors run the "Pessimistic Pro-Forma." We calculate your returns assuming high insurance, flat rents, and 75% LTVs. If the numbers still work, you have a winning deal.