The BRRRR strategy lets investors recycle capital across deals. Here's how to finance each stage, from the short-term rehab loan to the DSCR refinance that pulls your cash back out.
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat — a strategy for building a rental portfolio while recycling the same down payment across multiple deals. The whole model lives or dies on financing, so getting the two loans right is everything.
Start with a short-term fix and flip / bridge loan that funds up to 90% of purchase and up to 100% of rehab. You force appreciation by renovating a property bought below market, the same way a flipper does, but you intend to keep it.
Place a tenant and establish the market rent. That rent figure is what your long-term loan will qualify on, so a signed lease at a strong number directly improves your refinance.
Replace the short-term loan with a long-term DSCR loan based on the new, higher value and the rent. Because DSCR qualifies on the property, you can pull your original capital back out (a cash-out refinance) without your personal debt-to-income ratio limiting you.
With your capital recovered, you do it again. The constraint becomes deal flow and underwriting capacity, not cash. A portfolio loan can later roll several BRRRR properties into one blanket loan with a single payment.
Running the bridge and the DSCR refinance through the same lender keeps the timeline tight and avoids surprises at the handoff, the moment most BRRRR deals stall.
Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.
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