The BRRRR method — buy, rehab, rent, refinance, repeat — only repeats if the refinance returns most of your cash. In the DMV, whether that happens depends heavily on which side of the District line the house sits on. DC has a low property tax rate and rowhouses with basements that can become legal second units. Arlington and Bethesda have strong rents but prices that outrun them. Prince George’s County has the lowest basis in the close-in ring but higher tax rates and its own rental rules.
This guide runs the same BRRRR math across DC, Arlington, Bethesda, and Prince George’s County for 2026. Every example uses one financing assumption: a DSCR refinance at 7.5%, 30-year fixed, at 75% LTV unless coverage forces it lower. That rate sits inside our 5.75%–10.5% DSCR range. The Illinois counterpart is the Chicago collar vs. city BRRRR guide. The DC-only playbook is the DC BRRRR strategy guide.
The four markets at a glance (2026 planning bands)
| Factor | DC (rowhouse neighborhoods) | Arlington | Bethesda (Montgomery Co.) | Prince George’s inner ring |
|---|---|---|---|---|
| Typical BRRRR basis | $300K–$650K | $650K–$900K | $800K–$1.1M | $250K–$400K |
| Rehab $/sf (mid-gut) | $95–$150 | $85–$130 | $90–$140 | $70–$110 |
| Residential tax rate per $100 | ~$0.85 | ~$1.01–$1.03 | ~$1.10 | ~$1.10–$1.50 |
| Transfer + recording, round trip (planning) | ~2.9% | ~0.5%–0.7% | ~2.3%–2.5% | ~2.4%–2.6% |
| Second-unit path | Legal English basement | Accessory dwelling | Accessory dwelling | Accessory dwelling, varies by town |
| Rent regulation | Rent control on some buildings, TOPA | None (state law bars it) | Rent stabilization | County rent measures |
| Rental license | Basic Business License | County rules vary | DHCA rental license | County rental license |
Tax rates come from each jurisdiction: DC Office of Tax and Revenue, Arlington County, Maryland SDAT for both Maryland counties, and the Montgomery County DHCA for rent stabilization and licensing. Rates change each budget year. Treat the table as a planning start.
Worked example — DC: Brookland rowhouse with a legal basement
Composite. A 1,500-square-foot Brookland rowhouse with an unfinished basement.
| Line | Amount |
|---|---|
| Purchase | $540,000 |
| Mid-gut rehab (1,500 sf × $120) | $180,000 |
| Basement legalization | $60,000 |
| Closing, recordation tax, carry | $45,000 |
| All-in | $825,000 |
| ARV (two units) | $960,000 |
| Refinance at 75% LTV | $720,000 |
| Payment | ~$5,034/mo |
| Tax ($0.85 rate) + insurance | ~$850/mo |
| Rent: main $4,000 + basement $2,050 | $6,050/mo |
| DSCR | ~1.03 |
| Cash left in | ~$105,000 |
DC’s tax rate is doing real work here. At Montgomery County’s rate, the same house would carry about $200 more per month in tax, and DSCR would fall to about 0.99. The legal basement is the other half of the thesis. Without it, this is a rowhouse that rents for about $4,300 against a full monthly payment near $5,300 on a lower appraisal. Read the English basement financing page before you count that second rent.
Worked example — Arlington: brick colonial near Columbia Pike
Composite. A 1,600-square-foot brick colonial that needs a mid-level rehab.
| Line | Amount |
|---|---|
| Purchase | $700,000 |
| Rehab (1,600 sf × $95) | $152,000 |
| Closing and carry | $48,000 |
| All-in | $900,000 |
| ARV | $1,040,000 |
| Rent (single-family) | $5,000/mo |
| Tax (~$1.013 rate) + insurance | ~$1,028/mo |
| Payment at 75% LTV ($780,000) | ~$5,454/mo |
| DSCR at 75% LTV | ~0.77 — does not qualify |
| Loan that reaches 1.0 DSCR | ~$568,000 (about 55% LTV) |
| Cash left in | ~$332,000 |
Arlington is an appreciation and ADU story. Adding a permitted accessory dwelling could lift rent by $1,800–$2,300 a month. Without it, this deal is a long-term hold with a large equity position, not a repeatable BRRRR. Local detail: DSCR loans Arlington VA and the Arlington vs. DC core DSCR blog.
Worked example — Bethesda: split-level in Montgomery County
Composite. A 1,800-square-foot split-level.
| Line | Amount |
|---|---|
| Purchase | $875,000 |
| Rehab (1,800 sf × $100) | $180,000 |
| Closing (Maryland and county transfer and recordation) and carry | $60,000 |
| All-in | $1,115,000 |
| ARV | $1,250,000 |
| Rent | $6,200/mo |
| Tax (~$1.10 rate) + insurance | ~$1,316/mo |
| Payment at 75% LTV ($937,500) | ~$6,555/mo |
| DSCR at 75% LTV | ~0.79 — does not qualify |
| Loan that reaches 1.0 DSCR | ~$699,000 (about 56% LTV) |
| Cash left in | ~$416,000 |
Montgomery County’s rent stabilization law also limits how fast you can raise rent on most older rentals, which slows any plan to grow into coverage. Bethesda is usually a better flip market than a BRRRR market. See fix and flip loans Bethesda and the Montgomery County vs. DC tax friction blog.
Worked example — Prince George’s County: 4BR in the inner ring
Composite. A 1,300-square-foot single-family home near the DC line.
| Line | Amount |
|---|---|
| Purchase | $285,000 |
| Rehab (1,300 sf × $85) | $110,500 |
| Closing and carry | $32,000 |
| All-in | $427,500 |
| ARV | $480,000 |
| Refinance at 75% LTV | $360,000 |
| Payment | ~$2,517/mo |
| Tax (~$1.35 rate) + insurance | ~$665/mo |
| Rent — market | $2,900/mo |
| Rent — voucher (illustrative) | $3,350/mo |
| DSCR — market / voucher | ~0.91 / ~1.05 |
| Cash left in | ~$67,500 |
Prince George’s leaves the least cash in the deal, but coverage is thin at market rent because the tax rate is high. The deal works best with voucher-supported rent or a lower refinance LTV. Local terms: DSCR loans Prince George’s County and fix and flip loans Prince George’s County.
Side-by-side results
| Market | All-in | Refi loan | DSCR | Cash left in | Verdict |
|---|---|---|---|---|---|
| DC — Brookland 2-unit | $825,000 | $720,000 | 1.03 | $105,000 | Works with a legal basement |
| Arlington | $900,000 | $568,000 | 1.00 (capped) | $332,000 | Hold, not repeat |
| Bethesda | $1,115,000 | $699,000 | 1.00 (capped) | $416,000 | Flip market |
| Prince George’s | $427,500 | $360,000 | 0.91–1.05 | $67,500 | Works with voucher rent or lower LTV |
Why DC often wins the rowhouse BRRRR
- Low tax rate. DC’s $0.85 residential rate is the lowest of the four markets.
- Density inside the lot. A legal basement adds a second rent without buying more land.
- Voucher payment standards. DC Housing Authority payment standards are high in many zip codes, which helps east-of-the-river rentals.
DC’s costs are real too. Recordation and transfer taxes run 1.45% each above $400K. Ask your title company whether recordation tax applies to your refinance deed of trust, because in DC it can be a five-figure line. Tenant rules, TOPA, and licensing add time. Read the DC recordation guide, DC rent control guide, and BBL registration guide.
Friction checklist by market
| Friction | DC | Arlington | Bethesda | Prince George’s |
|---|---|---|---|---|
| Post-rehab reassessment | Yes — model the new value | Yes | Yes | Yes |
| Historic review | Common in rowhouse districts | Limited | Limited | Limited |
| Rental license before lease | Required | Check county | Required | Required |
| Rent growth limits | Some buildings | None | Yes | Check current county law |
| Tenant purchase rights on sale | TOPA | No | Limited county rules | Limited county rules |
Picking your lane
- Want repeatable cash recycling? DC rowhouses with a basement unit, or Prince George’s with voucher rent.
- Want appreciation with equity parked? Arlington holds, ideally with an ADU.
- Want a quick profit? Bethesda and upper-Northwest DC flips, not holds.
- Want the lowest tax drag? Stay inside DC.
Financing the whole cycle with Jaken Finance Group
- Purchase and rehab: hard money at 8.99%–13.5% interest-only, up to 100% LTC on qualified files, capped at 75% of ARV
- Refinance: DSCR at 5.75%–10.5%, up to 80% cash-out LTV in select markets, 30-year fixed or 40-year options
- Credit: credit-flexible, with no minimum FICO on select programs
We lend in DC, Maryland, and Virginia from our headquarters in Hoffman Estates, Illinois. See hard money lenders Washington DC, hard money lenders Montgomery County, and hard money lenders Arlington VA.
Related guides
- Greater DC investor market report 2026
- DC vs. Maryland vs. Virginia for investors
- DMV cross-border investing
- Chicago collar vs. city BRRRR guide
Run your BRRRR scenario · DSCR calculator · (833) 264-7776
Tax rates, transfer costs, and rent rules are 2026 planning figures and change by budget year and jurisdiction; verify before you buy. Rates and terms are offered only to qualified borrowers on non-owner-occupied investment property. Composite examples are illustrations, not offers or appraisals.