Buy-Renovate-Rent-Refinance-Repeat (BRRRR)

The “BRRRR” strategy is an acronym for a common investment strategy that real estate investors employ in order to purchase multiple properties with the same “recycled” cash used to purchase the first property

Real estate investors who use this strategy:

BUY a typically distressed property that needs a lot of work in cash upfront and fund the deal from inception.

Next, investors will RENOVATE the subject property resulting in a brand new rehab.

After the renovation, we RENT the new home by placing a quality tenant in the property.

Instead of “flipping” this deal as some investors are inclined to do,
BRRRR investors will then REFINANCE the property off of the now current, and brand new appraised value
of the property, which will be significantly more than the investor paid in cash up front to purchase.

BRRR investors will get back a majority if not all of their money back from the refinance

and then REPEAT this process.

This can be a very powerful strategy because of the investors ability to acquire several properties without depleting all of their capital.

While the investor continues to repeat this process, their properties are rented out to qualified tenants who pay off all the expenses on the property, and in JCRE markets, will STILL have positive cash flow for every deal!

BRRRR Model Perks:

• Investor can purchase multiple properties with the same, limited capital.

• Investor will typically have minimal out of pocket expense after refinance.

• Investor receives a brand new rehab resulting in a higher home value than what the investor paid. This is what we call “walk in equity.”

• Investor enjoys deferred maintenance expenses because brand new rehabs typically do not result in any major cap expenses for 5-7 years.

• Tenants will typically pay higher rents in order to live in a brand new property.