Buy, Rehab, Rent, Refinance, Repeat. See if the refi cashes you out of the deal.
Include a 10% contingency
Acquisition closing + 6mo carry
Appraised value after rehab
75% is typical for DSCR refi
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It\'s the single most-used strategy for investors who want to build a rental portfolio without leaving all their capital stranded in each deal.
The math works like this: you buy below market (or buy something distressed), rehab it to force appreciation, rent it to create cash flow, then refinance at 70–80% of the new appraised value. If the refi proceeds cover your total all-in cost, you\'ve pulled 100% of your capital out and you\'re free to move to the next deal. That\'s a full BRRRR.
Three numbers make or break every BRRRR:
The 70% rule is the classic screen: never pay more than (ARV × 70%) − rehab on the purchase. If you pay that or less, a 75% refi will usually return all your capital.
Buy, Rehab, Rent, Refinance, Repeat. A single-family / small-multifamily strategy where you buy distressed, force appreciation through rehab, rent for cash flow, refinance at the new higher value, and use the cash-out to move to the next deal.
A full BRRRR returns 100% or more of your invested capital via cash-out refi — you recycle all your money into the next deal. Most investors consider 80%+ recovery a win. Below 50% is barely a BRRRR.
75% is the most common DSCR-loan cash-out refi LTV for 1–4 unit rentals in 2026. Some lenders go to 80% on strong deals; tighter markets may cap at 70%. Use 75% unless you have a specific lender quote.
Pull 3–6 sold comps within a half-mile in the last 6 months — similar bed/bath, similar square footage, similar condition post-rehab. Be conservative. Appraisers tend to come in at or below the comps, so don't underwrite to the highest comp.
Never pay more than (ARV × 70%) minus rehab on the purchase. If ARV is $220k and rehab is $45k, max purchase is ($220k × 70%) − $45k = $109k. This ensures a 75% refi returns your capital with room to spare.