The Rental Portfolio Builder Program
A disciplined, BRRRR-based program for turning a single pool of capital into a durable single-family rental portfolio in tertiary markets — compounding across three engines of return over a fixed 24-month investment period.
The Strategy
Most single-family rental funds buy stabilized inventory at retail and hope that appreciation and rent growth carry the return. That approach compounds slowly and leaves no margin for error. Our program is built on a different premise: a dollar of capital should work multiple times inside the investment period, and every home the portfolio keeps should add retained equity to the balance sheet on the day it closes.
We run a disciplined BRRRR cycle — buy below market, renovate to lender standards, rent, refinance at the new appraised value, and recycle the capital into the next acquisition. Along the way, every stabilized home begins generating monthly cash flow that compounds into the next cycle's starting capital. The result is a portfolio that grows on three engines at once.
Three Engines of Return
The program compounds on recycled capital, monthly rent, and retained equity — simultaneously.
Recycled Capital
Every acquisition is bought below market, renovated to lender standards, refinanced against the new appraised value, and the capital redeployed into the next cycle. A single dollar is deployed multiple times over the investment period.
Monthly Rental Income
As each home stabilizes, it begins generating rent. We model conservatively — $100 of monthly profit per door at 90% occupancy, beginning 120 days after purchase to allow for renovation and lease-up. Real tertiary-market cash flow often exceeds this.
Retained Equity
Because we buy at 75% of ARV and refinance at 80% LTV, a spread is left on the balance sheet as long-term retained equity in every home the portfolio keeps. That equity is the compounding base for future refinances, sales, or 1031 exchanges.
Why Tertiary Markets
The BRRRR math only works where the inputs still make sense. Tertiary markets are where they do.
Supply You Can Actually Buy
Tertiary MSAs still have inventory at the price points where the BRRRR math works. Institutional capital is crowded into the top 30 markets — the tertiary bench is where spreads survive.
Labor You Can Actually Schedule
Smaller markets mean tighter contractor bench, shorter draw cycles, and faster reno-to-refi turnaround. That is the single biggest variable in a BRRRR cycle count — and it lives at the local level.
Exit Optionality
Stabilized rental portfolios in tertiary markets sell both as individual assets to owner-occupants and as pools to regional rental operators. That dual exit is what makes the retained-equity line real money, not just a spreadsheet number.
How the Program Works
Market & Strategy
We select tertiary MSAs with workable supply, permitting, and rent-to-value ratios — and set the acquisition, renovation, and refinance parameters the fund will underwrite to.
Acquisition Pipeline
Off-market sourcing, wholesaler relationships, and direct-to-seller channels feed a pipeline of homes purchased at or below 75% of ARV less renovation cost, closing-cost, and holding-cost reserves.
Renovation Delivery
Scope, budget, and schedule are set at acquisition. Contractors are vetted with the same PASS/FLAG/FAIL framework we use for our underwriting clients. Draws are managed to minimize holding time.
Refinance & Recycle
Once renovated and rented, each home is refinanced against the new appraised value at up to 80% LTV. The capital returns to the acquisition pool and funds the next cycle. The difference is retained equity.
Lease-Up & Stabilization
Stabilized rentals begin generating monthly income roughly 120 days after purchase. Income feeds back into the working capital pool, compounding the next cycle and growing the base each time.
Program Terms
The standing parameters the program underwrites to. Actual engagements are scoped to investor objectives and market.
- Investment Period
- 24 months (fixed)
- Target Markets
- Tertiary single-family MSAs
- Strategy
- BRRRR — Buy, Rehab, Rent, Refinance, Repeat
- Acquisition Discipline
- Max 75% of ARV (MAO), less rehab, holding, and close costs
- Refinance LTV
- Up to 80% of appraised ARV
- Rent Assumption
- $100 monthly profit per door, 90% occupancy
- Lease-Up Delay
- 120 days post-acquisition
- Management Fee (illustrative)
- 12% annualized, billed monthly on managed assets
What a Single Pool of Capital Can Do
Projected results for three starting investments over a fixed 24-month period, using the standing program parameters and our internal BRRRR fund-level model. These are illustrations, not guarantees — but the underlying assumptions are conservative and consistent across every scenario below.
| Metric | $1,000,000 | $2,000,000 | $5,000,000 |
|---|---|---|---|
| Starting Investment | $1,000,000 | $2,000,000 | $5,000,000 |
| Cumulative Rental Income (during term) | $275,078 | $560,990 | $1,418,724 |
| Ending Cash | $1,514,658 | $3,038,648 | $7,610,617 |
| Cumulative Cash Profit | $514,658 | $1,038,648 | $2,610,617 |
| Retained Equity in Portfolio | $11,667,167 | $23,717,939 | $59,870,254 |
| Homes Delivered | 317 | 646 | 1,632 |
| Cash CAGR | 23.1% | 23.3% | 23.4% |
| Total Wealth Created (at term-end) | $12,181,825 | $24,756,586 | $62,480,871 |
| Annual Rent Roll at Term (ongoing, every year after) | $342,360 | $697,680 | $1,762,560 |
The rent stream doesn't stop at term-end. Every home the portfolio retains keeps producing. On the $5M scenario, that's roughly $147,000 a month in ongoing rental profit — in perpetuity — on top of the Total Wealth Created figure above. This is the headline feature of the program: a finite investment period, an infinite income tail.
Model assumes 2.5 BRRRR turns over 24 months, $100K average purchase price, $30K average renovation, $1,500 monthly holding cost per active home, 75% MAO discipline, 90% financed acquisition, 80% LTV refinance, 1.5% refinance closing cost, $250 per-door closing costs, and $40K in program attorney/setup fees. Rental income modeled at $100 monthly profit per home at 90% occupancy, beginning 120 days after purchase. Annual Rent Roll at Term = Homes Delivered × $100 × 12 × 90%, representing the ongoing annual income the stabilized portfolio is expected to produce every year after term-end. Management fees are excluded from this illustration. Total Wealth Created = Ending Cash + Retained Equity in Portfolio (does not include future rent).
Why JDMC Runs This Program
We underwrite the contractor before the capital moves. Every acquisition goes through the same PASS/FLAG/FAIL evaluation framework we sell to banks and brokers. Renovation cost and schedule risk are priced before a purchase agreement is signed.
Tertiary-market tribal knowledge. We know the contractors, permit offices, appraisers, and rental comps in the markets we operate in. That is the difference between a BRRRR deck and a BRRRR portfolio.
AI-accelerated, human-validated. We use AI to move faster on document review, market comps, and pipeline triage — then a construction and real estate professional validates every deal before it funds.
Aligned, transparent fee structure. Management fees are billed monthly on the value of homes actively being purchased and renovated, with a floor tied to investment size. Aligned with activity, not window dressing.
Not an offer of securities. This page describes a program structure and an illustrative pro forma for informational purposes only. It is not an offer to sell or a solicitation of an offer to buy any security. Any actual engagement is governed by definitive documents and subject to investor qualification.
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