BRRRR stands for buy, rehab, rent, refinance, repeat. You buy a house that needs work, renovate it, rent it out, then refinance to pull some of your money back out for the next one. The rules inside each step are local. In Savannah, a city designed in 1733 (Chatham County-Savannah Metropolitan Planning Commission), that means permits, historic review, flood limits, lead-paint rules, Georgia landlord law and lender refinance guidelines. This guide takes them in order and leaves return projections out.
Key Takeaways
– As of October 2026, Fannie Mae and Freddie Mac require a borrower on title for six months before a cash-out refinance, and a first mortgage being paid off must be at least 12 months old.
– Buying without a mortgage can open the delayed financing exception, which caps the new loan at what you put into the purchase plus certain closing costs.
– In Savannah’s local historic and conservation districts, many visible exterior changes need a Certificate of Appropriateness before the building permit.
What should you check before you buy a BRRRR property in Savannah?
Check the jurisdiction, the historic district, the flood zone and the year the house was built. Chatham County tells permit applicants to confirm the property is in unincorporated Chatham County (Chatham County). Inside city limits, the City’s Development Services Department issues building permits (Metropolitan Planning Commission).
National Register listing has “few impacts” on developing a property, while locally designated districts “can and often do have regulations for development, maintenance, and building” (Metropolitan Planning Commission). Our historic district buying guide covers that review.
On flood risk, the City of Savannah says A, AH and AE “are the flood zones which are common in Savannah” (City of Savannah). For most pre-1978 housing, federal rules give buyers a 10-day period for a lead-based paint inspection or risk assessment, which the buyer can waive; foreclosure sales are exempt from the disclosure rule (U.S. EPA). For area options, see our Savannah neighborhoods guide and Savannah and Hunter Army Airfield page.
Do you need a permit to renovate a rental in Savannah?
Yes, for construction, alteration, repair and system work, and the permit comes first. The City of Savannah’s rule covers anyone who wants to construct, alter, repair or demolish a building, or install or replace electrical, gas, mechanical or plumbing systems: they “shall first make application to the Building Official and obtain the required permit for the work” (City of Savannah).
On the City’s residential list, a full roof replacement and installing or replacing drywall need a building permit. Replacing a sink, shower, toilet or tub needs a plumbing permit, and replacing wiring needs an electrical permit (City of Savannah). The City also lists projects that don’t need a permit, such as replacing roof shingles only, with a note that exterior work in historic districts still needs Historic Review Board approval (City of Savannah). In unincorporated Chatham County, application review “takes approximately 3 weeks” (Chatham County).
Skipped permits can also hurt the refinance. The City warns: “Many lenders will not recognize unpermitted square footage or upgrades, thereby reducing the appraised value of your home” (City of Savannah). In a BRRRR plan, that appraisal is what the refinance is measured against.
When do you need a Certificate of Appropriateness in Savannah?
You need one for many exterior changes in a local historic or conservation district. The Planning Commission says a COA “is required for a variety of exterior changes to both contributing and non-contributing buildings when visible from the public right-of-way” (Metropolitan Planning Commission). The certificate has to come before the building permit (Metropolitan Planning Commission).
Staff review can be done “in a week or so (maximum 30 days)” after a complete application, while a case that goes to a review board “may take 60 days or more” (Metropolitan Planning Commission).
What is the 50% rule for renovating in a Savannah flood zone?
It’s the renovation size that forces an older flood-zone house up to current flood standards. The City of Savannah’s “50% rule” covers pre-FIRM houses, built before May 21, 1971, that sit below the base flood elevation plus required freeboard. If repair or renovation costs, “cumulative over a five year period,” exceed 50% of the current fair market value of the structure only, the house has to be brought into compliance with the City’s Flood Damage Protection Ordinance. Pre-FIRM dates differ across Savannah with annexation dates.
For substantial improvements in zones A, AE, AH and AO, the finished floor and any materials that aren’t flood-resistant have to sit at or above the design flood elevation, and the City asks owners to contact its Floodplain Division before design or construction begins (City of Savannah). Outside the city, Chatham County requires floodplain approval for all projects in a flood zone (Chatham County).
Does the EPA lead paint rule apply to rental properties?
Yes, for rentals built before 1978. EPA’s Renovation, Repair and Painting Rule requires “that anyone paid to perform work that disturbs painted surfaces in homes, childcare facilities and preschools built before 1978 be certified and their employees be trained” (U.S. EPA). The owner exemption is narrow: the rule generally doesn’t cover homeowners working on their own homes, but “it does apply if you rent all or part of your home”. Georgia runs its own program under EPA authorization, so check the state’s certification steps first.
What rules apply once the house is rented?
Lead disclosure comes first. For most pre-1978 housing, landlords must disclose known lead-based paint information, hand over EPA’s lead pamphlet and include a Lead Warning Statement before the lease is signed (U.S. EPA). Georgia’s Landlord-Tenant Handbook adds the state rules (Georgia Department of Community Affairs):
- A landlord “cannot require a security deposit that is an amount more than two (2) months rent.”
- If a tenant gives proper notice and leaves owing no rent and causing no damage, the landlord must return the deposit within 30 days.
- If a rental has flooded at least three times in the past five years, damaging the living space, the landlord must give the prospective tenant written notice before the lease.
- Landlords must keep a unit “in good repair and in a safe and habitable condition.”
Short-term rentals follow separate rules, covered in our guide to Savannah short-term vacation rental rules. A Georgia attorney can answer questions about a specific lease.
How soon can you do a cash-out refinance after buying?
As of October 2026, Fannie Mae and Freddie Mac run two clocks on a cash-out refinance. A borrower must have been on title for at least six months, and an existing first mortgage being paid off must be at least 12 months old, note date to note date (Fannie Mae Selling Guide; Freddie Mac Guide). If a short-term rehab loan is your first mortgage, plan around 12 months.
Delayed financing is the exception for a property bought without a mortgage. Fannie Mae allows a cash-out refinance within six months of purchase if, among other requirements, the sale was arms-length, the settlement statement shows no mortgage financing, title shows no liens and your purchase funds are documented. The new loan is capped at your documented investment in the purchase plus closing costs, prepaid fees and points on the new loan, within loan-to-value limits on the current appraised value (Fannie Mae Selling Guide). Freddie Mac caps it at the original purchase price plus related closing costs, less any gift funds (Freddie Mac Guide).
Both caps start from the purchase, so ask your lender how renovation spending is treated. Expect cash-out pricing, too: Fannie Mae adjusts the price of certain cash-out loans by loan-to-value and credit score (Fannie Mae Selling Guide), and Freddie Mac charges a cash-out credit fee (Freddie Mac).
Fannie Mae lets lenders count positive rental income only if the borrower has at least 12 months of property management experience; otherwise the rent can only offset the property’s own payment (Fannie Mae Selling Guide).
Can you deduct renovation costs on a rental property?
Not in one year if they’re improvements. IRS Publication 527 for 2025 returns says “You must capitalize any expense you pay to improve your rental property” (IRS), and residential rental property is depreciated by the straight line method over 27.5 years under the general depreciation system. On a cash-out refinance, points tied to proceeds not related to rental use generally can’t be deducted as a rental expense. Check your numbers with a tax professional.
How many financed properties can you have with Fannie Mae?
Up to 10 when the new loan is for an investment property or second home underwritten through Fannie Mae’s DU system, and a multi-unit property such as a duplex counts as one (Fannie Mae Selling Guide).
Frequently Asked Questions
How long do you have to own a property before a cash-out refinance?
Usually six months. As of October 2026, Fannie Mae and Freddie Mac require at least one borrower on title for six months before a cash-out refinance, and a first mortgage being paid off must be at least 12 months old. Delayed financing can shorten the wait after a cash purchase.
Can you do a cash-out refinance right after buying with cash?
Yes, if the purchase meets Fannie Mae’s delayed financing rules, which include a settlement statement showing no mortgage financing, no liens on title and documented purchase funds. The new loan is capped at your documented purchase investment plus closing costs, prepaid fees and points on the new loan.
Can you use a VA loan for the BRRRR method?
Not for a property you won’t live in. VA lists living in the home as a requirement for its purchase loan and its cash-out refinance. Its rate reduction refinance asks you to certify that you live in or used to live in the home. A VA-approved lender can check your plan.
Talk through a Savannah property before you buy
Johnson & Affiliates Real Estate Group, eXp Realty, is a 22-agent team led by a retired U.S. Army Staff Sergeant with 12 years in real estate. If you’re weighing a rehab-to-rental in Savannah, get in touch and we’ll go through the property and the timeline with you.