BRRR stands for Buy • Rehab • Rent • Refinance • Repeat; a proven formula that turns undervalued properties into cash-flowing, equity-generating assets. But with the passage of the One Big Beautiful Bill on July 4, 2025, this method just got a serious turbo boost. Here’s how and why:

1. Bonus Depreciation — NOW Unlimited on Rehab Costs

   The bill makes 100% bonus depreciation permanent for qualifying property improvements through 2029. That means you can immediately expense major rehab expenditures—kitchen remodels, HVAC upgrades, even solar panels—reducing your taxable income significantly.
   

   Sources: Kiplinger, Axios, Landlord Studio

2. STRONGER Qualified Business Income (QBI) Deduction

   Pass-through investors (LLCs/SPVs owning rentals) now benefit from an elevated Section 199A QBI deduction—up to 23% on rental income. Your BRRR property doesn’t just produce rental income—it gets a major tax break.

   Source: KBKG

3. Increased SALT Cap — Better for High-Tax Markets

   The SALT (State and Local Tax) deduction cap increased from $10,000 to $40,000 (phasing out after 2029). This unlocks full property tax deductions in high-tax states, reducing your annual burden and increasing cash flow.

   Sources: Axios, Investopedia

4. Permanent Opportunity Zone Boosts

   Opportunity Zones are now a permanent fixture in the tax code. Investors who BRRR properties in designated OZs can defer—and potentially eliminate—capital gains taxes, creating long-term compounding benefits.
   

   Sources: Kiplinger, Investopedia

5. Mortgage Insurance Deduction Returns

   If your rehab loan required mortgage insurance, that deduction is now back, and is here to stay; another win for BRRR investors using leverage.
   

   Sources: Kirkland & Ellis, Tax Foundation

6. Estate & Gift Exemption Expansion

   The lifetime estate & gift tax exemption rose to ~$15 million (single) and $30 million (married). BRRR portfolios can now be passed to heirs with minimal tax exposure—game-changing for long-term legacy planning.
   

   Sources: Frost Brown Todd, Investopedia

7. Refi at Scale = Constant Tax-Friendly Capital

   After rehabbing, your property’s valuation skyrockets. By refinancing, you pull out that equity as non-taxable capital—fueling your next BRRR deal without triggering capital gains.

8. Resilience to Inflation & Rate Volatility

   The combo of bonus depreciation and QBI deductions shields income from inflation and rising interest rates. That makes BRRR more dependable than ever—even in uncertain markets.

9. Asset Control vs. Market Control

   Unlike stocks, BRRR gives you direct control. A new kitchen here, a tenant upgrade there—these value-boosting changes are in your hands. Tax law continues to reward that effort.

10. Built-in Growth Engine

    Pair rehab-driven appreciation with accelerated tax deductions and cash-flow amplifiers. You’re not just building wealth—you’re compounding it. Rinse, repeat, and scale.

The Bottom Line for 2025

The One Big Beautiful Bill didn’t just tweak the tax code—it supercharged real estate investing strategies like BRRR:

Immediate tax relief via write-offs and deductions
Cash-flow enhancement through QBI and SALT benefits
Legacy planning upgrades via higher estate exemptions

For savvy investors, that’s a trifecta making BRRR one of the most powerful real estate strategies in decades—combining tactical control with massive tax tailwinds.

Thinking of BRRR’ing in 2025?

Work with a tax advisor to:

Track eligible bonus depreciation and QBI claims
Structure ownership for SALT deduction optimization
Map out refinance timing and Opportunity Zone elections

By aligning property strategy with smart tax planning, you’re not just growing your portfolio—you’re legally optimizing it.

Real estate remains a tangible, scalable asset class—and in 2025, BRRR fueled by the Big Beautiful Bill may be the smartest wealth move on the board.