CalculateRealEstateROI

BRRRR · Guide

Beginner's Guide to BRRRR

Your first BRRRR — from finding a candidate property to executing rehab and refinancing without losing money.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Key takeaways

  • Start with a light rehab, not a gut renovation.
  • Get refi pre-qual before buying.
  • Track every dollar of rehab.
  • Plan for capital left in.
  • Use BRRRR-experienced agents and contractors.

Core concepts

Light vs heavy rehab

Cosmetic (paint, floors, kitchen update) is forgivable; structural is not for beginners.

Project tracking

Spreadsheet with budget vs actual line items, updated weekly.

Refi readiness

Lender pre-qual letter in hand before purchase.

Realistic outcomes

Expect 80–90% capital recovery on first BRRRR.

Step-by-step framework

  1. 1Find property at 70% (ARV − rehab) or below.
  2. 2Get rehab quotes from 2 contractors.
  3. 3Close with hard money or cash.
  4. 4Execute rehab in 60–90 days.
  5. 5Place tenant; refinance.

Common mistakes to avoid

  • Tackling a gut rehab on first deal.
  • Skipping refi pre-qual.
  • No rehab tracking spreadsheet.
  • Buying at 80% (ARV − rehab) thinking 'close enough.'

Frequently asked questions

Cash or hard money?

Cash if you have it. Hard money costs 10–14% + points.

How long does first BRRRR take?

6–9 months from purchase to refi completion.

Is BRRRR for first-time investors?

Better to do 1 traditional rental first, then BRRRR.

What credit score do I need?

DSCR refi: 660+; conventional: 680+.

Action checklist

  • ☐Refi pre-qual in hand.
  • ☐Two contractor quotes.
  • ☐ARV from sold comps.
  • ☐Rehab tracker spreadsheet.
  • ☐Cash reserves for capital left in.

More from BRRRR Investing

BRRRR Best Practices
The disciplined version of BRRRR — underwriting to ARV, sticking to budget, and refinancing into terms that hold.
Common BRRRR Mistakes
Most BRRRR failures trace to over-paid purchases, under-budgeted rehabs, or unrealistic appraisal expectations.
Advanced BRRRR Strategy
Scaling BRRRR — parallel deals, portfolio refinancing, and creative capital stacks for experienced operators.
BRRRR Resource Center
Calculators, market data, and tools to underwrite, execute, and refinance BRRRR deals.
The 70% Rule Explained
Why the 70% rule still anchors BRRRR underwriting and when to bend it.
Finding BRRRR Deals
MLS, off-market, wholesalers, and direct mail — pipelines that consistently produce BRRRR-eligible properties.