BRRRR Real-Estate: Buy → Rehab → Rent → Refi → Repeat
Recycle your capital, multiply cash-flow and build a rental empire without
draining savings. I’ll guide you through each BRRRR step—analysis, rehab,
tenanting and cash-out refinance—so you can Repeat on autopilot.
BRRRR is the recycler’s playbook for scaling rentals with minimal out-of-pocket
cash. Acquire a discounted property, force appreciation through renovation,
stabilize with a quality tenant, then refinance to pull out most—sometimes
all—of your original capital. With funds back in hand, you repeat the cycle,
compounding equity and passive income. My role: accurate COR analysis, lender
seasoning guidance, and tight project oversight so refi proceeds meet
expectations.
Five-Step Path to Capital Recycle
- Buy — Target 70–75 % of ARV minus rehab budget.
- Rehab — Tenant-friendly, value-add updates that boost appraisal.
- Rent — Screen tenants; lock market or premium rents for DSCR.
- Refi — Cash-out at 75–80 % LTV; recover 90–100 % of capital.
- Repeat — Deploy recycled funds into the next deal within 60–90 days.
Typical Performance Benchmarks
• Capital recycled at refi: 85–100 %
• Post-refi cash-flow: $250–$450 / door
• Additional equity return: 6–8 % / year
• Holding period to refinance: 3–12 months
Why Partner with Me
- Full Deal Analysis — ARV comps, rehab line-items, DSCR stress tests.
- Trusted Lender Bench — DSCR & portfolio lenders comfortable with 90-day seasonings.
- Contractor Oversight — Weekly progress reports, draw management, change-order control.
- Exit Flexibility — Flip or wholesale backup if refi terms shift.
- Repeatability — Templates for bookkeeping, rent-roll tracking & scalable systems.
BRRRR Cycle Walk-Through
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Risk Disclaimer: Past performance is not a guarantee of future
results. Loan terms, appraisal values, and market conditions can affect refi
proceeds. Perform independent due diligence before investing.
Recycle Your Capital—Scale Faster
Let’s analyse a live BRRRR lead and craft your step-by-step plan.
Explore More Strategies
Fix & Flip – Rapid $30–80 K profit spreads in 3-6 months.
Passive & Vacation Rentals – Long-term cash-flow plus six-figure Airbnb upside.
Funding Solutions – Hard-money, DSCR and private-lending options tailored to each deal.
Frequently Asked Questions
How do I estimate rehab costs quickly?
Start with a cost-per-square-foot baseline from local contractors, then adjust
for major systems (roof, HVAC, plumbing, electrical). Add a 10–15 % contingency
for surprise items discovered during demo.
What financing options fit first-time investors?
Popular choices include hard-money loans (higher rates, quick close), DSCR
rental loans (based on cash-flow, not personal income) and low-down conventional
investor loans for those with strong credit.
How do I choose between long-term and short-term rentals?
Long-term rentals = steady income & less management; short-term rentals
(Airbnb) = higher gross revenue but require active or professional management
and local STR compliance. We’ll run both pro-formas before you buy.
What closing costs should I expect on an investment purchase?
Budget 3–5 % of purchase price for lender fees, title insurance, escrows and
transfer taxes. Hard-money points and interest are in addition to these costs.
Mini Case Study
| Metric | Value |
|---|---|
| Purchase Price | $250,000 |
| Rehab Budget | $40,000 |
| After-Repair Value (ARV) | $350,000 |
| Cash-Out Refi Proceeds (75 % LTV) | $262,500 |
| Cash Recycled | ≈ 90 % |
| Monthly Cash-Flow (post-refi) | $350 |
Glossary – Key Terms
ARV •
DSCR •
LTV •
Cap Rate •
ADR
Click any term for a quick definition or deep-dive article.