BRRRR
Real Estate / CashflowBRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is a real estate investment strategy where you use one pool of capital to acquire and renovate a property, rent it out, then do a cash-out refinance to pull your original capital back out — which you then redeploy into the next property. Repeat the cycle and you build a portfolio of cashflowing assets with the same money used over and over.
How it works in five steps. (1) Buy a distressed property below market value — often with cash, hard money, or private capital. (2) Rehab it to bring it up to market standards. (3) Rent it to a qualified tenant to stabilize the income. (4) Refinance with a long-term loan based on the new, higher appraised value, pulling out most or all of your original capital. (5) Repeat on the next property with the same money.
| Line item | Amount |
|---|---|
| Purchase price | $100,000 |
| Rehab cost | $30,000 |
| Total invested (all-in) | $130,000 |
| After-repair value (ARV) | $200,000 |
| Cash-out refi at 75% LTV | $150,000 |
| Capital returned (and then some) | $150,000 |
| Money left in the deal | $0 (infinite return) |
The “infinite return” comes when the refinance returns 100% or more of your capital. You own a cashflowing asset with zero of your own money left in the deal — your return on invested capital is mathematically undefined (infinite) because the denominator is zero.
The BRRRR method works best in markets where you can reliably buy at a discount and where rental demand supports stable occupancy. For the full mechanics, see infinite return with BRRRR.