What is the BRRRR Strategy?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a real estate investment strategy that lets you build a rental portfolio with minimal capital by recycling your investment through cash-out refinancing.
How the BRRRR Method Works
- Buy — Purchase a property below market value (often distressed or off-market)
- Rehab — Renovate to increase the property's value and make it rent-ready
- Rent — Find a tenant and generate monthly cashflow
- Refinance — Take out a new loan based on the ARV, pulling out most or all of your original investment
- Repeat — Use the cash-out proceeds to fund your next deal
Key Metrics to Watch
- Cash-on-Cash Return — Your annual cashflow divided by the cash you have left in the deal. Aim for 10%+ for a strong BRRRR
- Cash Left in Deal — Ideally zero or close to it. The best BRRRR deals let you pull out 100% of your capital at refinance
- Monthly Cashflow — Rent minus all expenses including the new mortgage payment. Positive cashflow is essential
- Equity Position — The difference between ARV and your loan balance. This is your built-in wealth
Need help estimating ARV? Try our free ARV calculator. For fix-and-flip analysis, use our deal calculator or the 70% rule calculator.