Buy, Rehab, Rent, Refinance, Repeat (BRRRR)

Definition

BRRRR is a five-step rental-acquisition strategy: Buy a distressed property below market, Rehab to a rentable standard, Rent to a qualified tenant, Refinance based on the new After Repair Value, and Repeat with the recovered capital. The goal is to convert short-term private capital into long-term agency financing while pulling most or all of the equity back out.

Worked example

Buy at $300k + $60k rehab = $360k all-in. After 6 months, ARV is $480k and a 75% LTV refinance returns $360k — fully recycling capital while keeping the property as a cash-flowing rental.

How DealIntel uses it

BRRRR is one of six strategies in the DealIntel underwriting engine. The platform stress-tests the refinance step against rate, DSCR, and absorption shocks, so a deal that 'pencils' on paper but breaks on a rate spike is flagged before the buy.

Related terms

• After Repair Value · ARVThe estimated market value of a property after planned renovations are complete.
• Loan-to-Value · LTVThe ratio of a loan amount to the appraised value of the underlying property.
• Debt-Service Coverage Ratio Loan · DSCRAn investment property loan qualified on the property's rental income rather than the borrower's W-2 income.
• Capitalization Rate · Cap RateThe annual unlevered return of an income property, expressed as a percentage of its value.