BRRRR Method
Buy, Rehab, Rent, Refinance, Repeat: a strategy for recycling capital across multiple rental acquisitions.
Definition
BRRRR is an investment strategy that treats each property as a capital event rather than a long-term holding cost. You buy a distressed or undervalued property, rehabilitate it to increase rent and after-repair value, place a tenant, refinance against the new appraised value, and recycle your capital into the next deal.
The magic of BRRRR is velocity. A successful BRRRR pulls 80 to 100 percent of your original cash back out on refinance, which means the same $50,000 can acquire three or four properties over a few years instead of one. Infinite returns become mathematically possible when you pull all your capital back out.
BRRRR requires accurate ARV estimation, disciplined rehab budgets, and a lender relationship that supports seasoning and cash out refinance. When any of those break down, capital gets stuck in the deal and the strategy stalls.
Example
Buy at $110,000, rehab $35,000, ARV $220,000, refinance at 75 percent LTV pulls out $165,000 — recovering all $145,000 in.
Frequently asked
How long does a BRRRR take?
Most BRRRRs run 4 to 9 months from purchase to refinance once you add rehab time, tenant placement, and seasoning requirements.
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