Real Estate Investing · West Adams, Los Angeles
How I Recycled $300,000 in Equity to Buy a Second Investment Property — Without Saving Another Dollar
Most investors think they need fresh capital for every deal. They save, wait, save more — and watch opportunities pass while they're busy stacking cash. Then my partner Ari Wintraub and I executed a full BRRRR cycle in West Adams and I realized the capital was already sitting in a building we owned. We just had to unlock it.
This is the story of how we did it, what it cost, what it made us, and what we bought next. If you're a real estate investor — or want to become one — I want you to walk away from this with a clear framework and a little fire.
What Is the BRRRR Strategy? And Why It Still Works in Los Angeles.
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Buy a distressed property below its potential. Renovate it. Lease it to quality tenants. Refinance against the new appraised value to pull your equity out as cash. Use that cash to buy the next building.
You're not spending new money — you're moving the same money forward. Every deal funds the next one. That's the compounding power most investors never access.
When rates shot up in 2022, people declared BRRRR dead. They were wrong. The key isn't the rate — it's the spread between your renovation-driven equity and what you can pull out. If the math works post-rehab, the strategy works. Full stop.
In 2022, when most investors were retreating from rising rates, Ari and I were looking harder. We found a stacked duplex in West Adams — two 2-bed/1-bath units, each about 1,100 square feet. Plenty of bones, zero finishes. The previous buyer had just bailed out of escrow when rates spiked. That was our opening.
We closed at $875,000 with both units vacant — a clean runway to renovate on our own terms.
One of LA's most compelling value-add corridors right now — strong renter demand, proximity to Culver City, favorable ADU zoning, and prices that still reflect real upside. If you're not paying attention to this neighborhood, you're leaving opportunity on the table.
The best deals often come from a buyer's fear. When someone backs out of escrow, their loss is your opportunity. Always have capital ready to move fast.
Halfway renovations produce halfway results. We went all in. Full gut of both units — every tile ripped, every surface replaced, wood floors refinished, new cabinets throughout.
Yes, we went over budget. That happens. What matters is that the finished product matched the vision — and the vision was right. When we walked through the completed building, it looked like a completely different property.
We were so proud of it, Ari and I threw a 100-person Halloween party inside before the first tenant ever stepped through the door. DJ, kegs, costumes. Celebrated properly. Cleaned up the next morning. Listed the units.
A great renovation isn't a cost. It's an investment in your appraisal, your tenant quality, and your long-term cash flow. Cheap rehabs attract cheap results — and expensive problems down the road.
By mid-December, both units were leased at approximately $3,350/month each. Even at a 6.25% interest rate, the numbers came in better than expected.
Positive cash flow and good tenants feel like the finish line. It isn't — it's just the foundation. The real move happens when you ask: what is this equity worth, and where can it go next?
"We hadn't saved a dollar of new capital. We had built equity through renovation and time — and now we were going to deploy it forward."
Michael Abraham · West Adams, 2026Three years in, I asked Ari how much capital he had available if we found the right deal. He said, "Let's look at what's sitting in the duplex."
We ran the numbers on a cash-out refinance. Residential investment loans typically allow up to 75% LTV. With a strong post-renovation appraisal, we were positioned to pull out roughly $300,000 — while still cash-flowing positive on the original property.
A cash-out refinance replaces your existing mortgage with a new, larger one. You receive the difference in cash. Most investment property loans allow up to 75% of the appraised value. The better your renovation and the stronger your appraisal, the more equity you can unlock.
The appraisal came back right where we needed it. That wasn't luck — it was the result of a disciplined renovation that maximized comp value in the neighborhood. Invest in a presentation before the appraiser walks through.
With the equity from the duplex in hand, Ari and I went back to West Adams. We found a corner-lot property — critical for ADU development — with one unit already renting at approximately $3,200/month and another unit coming vacant. Value-add. Income in place. A clear path to adding two ADUs.
Corner lots in Los Angeles give you significantly more flexibility for ADU placement, access, and permitting. Two ADUs on the right lot can double your rental income and dramatically increase appraised value — the next BRRRR cycle starts the moment you close.
Getting too close wasn't easy. Multiple hurdles. Moments it looked like it might fall apart. But we closed.
Bronson
What This Means for You
If you've been sitting on the sidelines waiting for a better market, this is your reminder that the investors building wealth right now aren't waiting. They're running the math and making moves.
I'm a REALTOR® at Compass Beverly Hills and an active real estate investor. I don't just list properties — I buy them. That difference matters when you're sitting across from someone guiding your investment decisions. I can show you deals I'd actually put my own money into.
Frequently Asked Questions
Questions investors ask me about BRRRR in Los Angeles
Does BRRRR still work with high interest rates?
Yes — if the post-renovation appraisal supports a strong enough refinance and the rents cover the new payment, the strategy works at any rate. The math has to pencil. Our 6.25% deal cash-flowed $1,600/month. Rate isn't the variable — spread is.
What neighborhoods in LA are best for BRRRR investing right now?
West Adams, Jefferson Park, Leimert Park, and parts of South LA offer some of the strongest value-add fundamentals in the city — rising rents, strong demand, and properties still priced below their post-renovation potential.
How much capital do I need to start?
A down payment plus renovation costs. On our West Adams deal, we went in at an $875K purchase price + $300K in renovations and pulled back $300K through a refi. The goal is to recover a significant portion and move it forward into the next deal.
What is an ADU and why does it matter for LA investors?
An ADU (Accessory Dwelling Unit) is an additional residential unit on an existing lot. Los Angeles has some of the most investor-friendly ADU laws in the country. Adding ADUs dramatically increases both appraised value and rental income — corner lots make permitting significantly easier.
Can I co-invest or partner with you on deals?
That's exactly the kind of conversation I want to have. Reach out directly, and let's talk about what makes sense for your situation and goals.
Let's work together
Ready to Find Your Next Deal in Los Angeles?
I'm a REALTOR® at Compass Beverly Hills and an active real estate investor. I don't just sell homes — I build portfolios. Let's talk about your next move.
The next deal is out there. Let's find it.
Michael Abraham | REALTOR® DRE #02242095 · Compass Beverly Hills · 9454 Wilshire Blvd Ste 100, Beverly Hills CA 90212 · AMRE Real Estate Group is a team affiliated with Compass. Compass is a real estate broker licensed by the State of California. DRE #01991628. Equal Housing Opportunity. All material is intended for informational purposes only. If your property is currently listed for sale this is not a solicitation.
