Buy → Rehab → Rent → Refinance → Repeat. Model every step, compare cash vs. PML financing, and see exactly how much cash you leave in the deal after the cash-out refi.
BRRRR is a rental strategy built around recycling your capital. You buy a distressed property with cash or short-term financing, rehab it, rent it out, then refinance into a long-term mortgage. If the cash-out refi returns all your invested capital, you've built a rental with $0 left in the deal — which means an infinite cash-on-cash return.
Distressed, off-market, or aggressively priced. Your spread at purchase is what makes BRRRR work — you can't refinance out of a bad buy.
Your rehab should raise appraised value enough that 75% of the new ARV covers your total all-in cost. Model conservatively.
Most lenders require 3–6 months of seasoning before a cash-out refi. Once funded, the capital you pulled out is your next deal's down payment.
Deal Snap REI runs this same BRRRR model automatically on every listing — with live ARV blending, rent estimates, and a BRRRR score out of 10.
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