BRRRR 2.0 The Smarter Way to Build Wealth in Multifamily

BRRRR 2.0

The Smarter Way to Build Wealth in Multifamily

For years, real estate investors have followed the tried-and-true BRRRR strategy—Buy, Rehab, Rent, Refinance, Repeat—as a way to build wealth and scale portfolios. The idea is simple: buy a distressed property, fix it up, rent it out, refinance at a higher value, and repeat the process to continue growing.

But what if we told you there’s a more efficient way to maximize returns without pouring money into costly renovations?

Introducing BRRRR 2.0 - Replace “Rehab” with “Reduce”

Instead of sinking tens of thousands into repairs and upgrades that may take years to recoup, focus on reducing expenses and increasing NOI (Net Operating Income) to drive up your property’s value without major capital improvements. This approach gives you all the benefits of BRRRR—higher cash flow, better refinance options, and long-term portfolio growth—but in a way that’s faster, more cost-effective, and scalable.

How to Reduce Expenses and Increase NOI Like a Pro

Here are five powerful NOI hacks that help you lower costs, increase revenue, and boost your property value without swinging a hammer.

1. Implement RUBS (Ratio Utility Billing System).

Stop eating the cost of utilities! With RUBS, you can pass water, sewer, trash, and even shared gas expenses to your residents. Institutional investors have been using this strategy for years, but smaller operators often don’t realize they can do it too. Billing tenants for their fair share not only reduces your expenses but also encourages conservation, lowering the overall property consumption.

💡 Example: A 20-unit property spending $12,000 a year on water/sewer can recover 90% of that cost using RUBS—adding $10,800 in annual NOI. At a 5% cap rate, that’s a $216,000 increase in property value!

2. Unbundle Rent & Charge for Amenities.

Are you charging all-in-one pricing? You’re leaving money on the table. Large operators have mastered the art of unbundling charges and adding fees for services tenants are already using.

✅ Pet rent ($25-$50 per month per pet)

✅ Parking fees ($50-$150 per month)

✅ Storage rental ($25-$100 per month)

✅ Common area access (gyms, pools, clubhouses, etc.)

When you separate these charges from rent, tenants view them as optional add-ons rather than an increase in rent—helping maximize revenue while keeping base rent competitive.

3. Managed WiFi for Higher Profits.

Instead of letting residents sign up with their own internet provider, offer building-wide managed WiFi and include it as a fee on their rent statement. It’s cheaper for tenants and more profitable for you because bulk-rate internet costs far less than what residents pay individually.

💡Example: A 50-unit property can offer WiFi at $40/month per unit while paying just $10/unit for bulk service. That’s $1,500 in monthly profit and $18,000 in extra NOI, which translates to a $360,000 boost in property value at a 5% cap rate.

4. Add Revenue-Generating Services Beyond Rent.

Consider ways to increase property income by offering services tenants will happily pay for:

✅ Laundry – Install or upgrade coin-op machines and set competitive pricing

✅ Package Lockers – Charge a small monthly fee for secure package storage

✅ Vending Machines – A passive income stream with minimal effort

5. Optimize Expenses & Bulk Purchasing.

Take a hard look at operating costs and negotiate better rates on everything from landscaping to insurance. Bulk purchasing for common property needs (light bulbs, maintenance supplies) can cut costs without cutting quality.

The Bottom Line... BRRRR Smarter, Not Harder

Instead of spending $50K+ on renovations and waiting years to recover the cost, reduce expenses, boost NOI, and increase property value in months, not years. This strategy works across all property sizes, from duplexes to 200+ unit portfolios—and the best part?

It’s scalable and sustainable.

With Utility Ranger, you can implement RUBS, automate billing, and start recovering utility costs today. It’s the easiest way to increase NOI without increasing your workload.

🔗 Ready to BRRRR Smarter? Let's Chat

I'll show you how to unlock hidden profits today with BRRRR 2.0!