BiggerPockets Real Estate Podcast

← BiggerPockets Real Estate Podcast28 ago · 35 min

BRRRR vs. New Construction: Which Makes More Money in 2026 (I Did the Math)

BRRRR vs. New Construction: Which Makes More Money in 2026 (I Did the Math)28 ago35 min

Is it better to buy an existing property with value-add potential or a new construction home in 2026?

For years, there was no debate. The ability to buy a property at a discount, add value through renovations, force appreciation, and recycle your money made the BRRRR method a no-brainer for most investors.

But in 2026, things are a little different. Builders are sitting on inventory, which means new homes are being sold for less than we’ve seen in years. Not to mention, builders are giving buyers massive incentives like mortgage rate buydowns, closing credits, and even price reductions—just to get these properties off their books.

But are these perks enough to make new construction a better option than the BRRRR strategy?

Today, we’re going to put them head-to-head and find out. I’m comparing two real estate deals in the exact same market—a new construction home and a value-add property. We’ll crunch the numbers and see which strategy actually comes out on top from a cash flow and appreciation perspective. The answer may surprise you.

In This Episode We Cover

Three scenarios when you might prefer a new build to a fixer-upper

A head-to-head comparison of two real estate deals in the same market

How to negotiate huge builder incentives when buying a new home

How to choose the right investing strategy for you in 2026

The biggest pros and cons of buying a new construction home

And So Much More!