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Investment Strategies

BRRRR

BRRRR Strategy

Buy, Rehab, Rent, Refinance, Repeat — a strategy to recycle capital and scale your portfolio quickly.

The Five Steps

  1. Buy: Purchase a below-market-value property
  2. Rehab: Renovate to increase value (force appreciation)
  3. Rent: Place tenants and stabilize income
  4. Refinance: Cash-out refinance based on new appraised value
  5. Repeat: Use returned capital for the next deal

Key Success Metrics

  • Buy at 70-75% of After-Repair Value (ARV)
  • Refinance should return 75-100% of invested capital
  • Post-refinance cash flow must remain positive

Risks

  • Over-budget rehab costs
  • Lower-than-expected appraisal
  • Market shift during rehab period
  • Seasoning requirements (6-12 months before refinance)