How to BRRRR in Plano, TX

Start with the gross math. Plano's typical home value is $507,575; ZORI (Zillow's rent index) sits at $1,696/mo. That's 4.01% gross annual yield. That's right at the national 4-5% baseline — workable for BRRRR, but only on disciplined underwriting and a clean refi appraisal.

Run the DSCR sanity check. Assume 75% LTV refi at 7.5% interest, 30-year, plus taxes + insurance + 8% PM + 8% vacancy/capex reserve. On these inputs your DSCR will likely come in under 1.10 in Plano — most lenders won't refi at that ratio without a rate-buydown or larger equity contribution. Plan to leave 25-30% in the deal instead of the textbook 0%.

Rent demand color: Plano rents ($1,696) sit 12% below the national median ($1,930). Local rent is the constraint here — even at favorable acquisition prices, the rent side of the math is the limiting factor.

Refi appraisal risk: Plano home values are down 5.5% YoY. That's the biggest threat to your refi — if you're underwriting today and refinancing in 8 months, comps may have softened further. Stress-test your refi ARV at -5% of today's median.