Is BRRRR still effective?

Yes, when the numbers work, and they work less often than they did at 4% mortgage rates. The refinance still returns your cash if you buy at a real discount. What changed is the payment on the new loan.

The cash-out half depends on the gap between purchase plus repairs and appraised value. That gap still exists wherever distressed property sells below finished value. Buy at 65 to 70% of after-repair value and a 75% refinance returns most or all of your cash.

The rental half is where higher rates bite. A $195,000 refinance at 7.25% costs about $1,330 a month before taxes and insurance; the same loan at 3.5% cost about $875. Many deals now return the cash and then lose money monthly. The method works best in lower-cost markets where rents are high relative to values.