BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a way to build a rental portfolio while recycling the same capital from deal to deal.
The five steps
- Buy a property below market value, usually one that needs work.
- Rehab it to rental standard, adding value along the way.
- Rent it to a qualified tenant.
- Refinance into a long-term DSCR loan based on the new, higher value and the rent.
- Repeat with the cash you pulled out.
How to finance it
A bridge loan covers the Buy and Rehab steps, when banks won't lend on a distressed property. A DSCR loan covers the Refinance, paying off the bridge loan and often returning much of your cash. We arrange both, so one advisor handles the deal from start to finish.