What is the BRRRR strategy?

Direct answer

BRRRR (Buy, Rehab, Rent, Refinance, Repeat) is a cycle where you buy a distressed property, renovate it, rent it, then refinance to pull invested capital back out.

Expanded explanation

Executed well, BRRRR achieves an 'infinite return' — once capital is recycled, any cash flow is on $0 invested. Requires: distressed acquisition at 70% of ARV minus rehab, disciplined rehab budgets with 15% contingency, stable tenant placement, and a refinance lender willing to use appraised value rather than purchase price (often DSCR lenders).

Examples

• $60k purchase + $35k rehab + $5k carry = $100k all-in; refinance at 75% of $145k ARV pulls $108k back.

More BRRRR questions

• What is the 70% rule in BRRRR?
• What are BRRRR seasoning rules?
• How do I budget a BRRRR rehab?
• How do I find ARV comps?
• Which lenders are best for BRRRR refis?
• How do I achieve infinite return on BRRRR?