The BRRRR method is the most powerful wealth-building strategy in real estate investing. Here’s how to execute it — and how the right financing makes it work.
What Is BRRRR?
Buy — Purchase an undervalued property below market value
Rehab — Renovate to increase value and make it rent-ready
Rent — Place a tenant and stabilize rental income
Refinance — Cash-out refinance based on new appraised value
Repeat — Use the cash-out proceeds to buy the next property
The Math That Makes BRRRR Work
Example: You buy a property for $150K, put $50K into rehab (total: $200K). After renovation, it appraises for $280K. You refinance at 75% LTV = $210K loan. You pull out $210K, pay off your $200K all-in cost, and pocket $10K — while keeping the property as a rental producing monthly cash flow.
Financing Each Stage
- Buy + Rehab: Use a cosmetic or structural rehab loan (short-term, 12-24 months)
- Refinance: Use a DSCR loan (long-term, 30/40-year fixed) — qualify on rental income, not personal income
Hard Hat Capital Covers Both Stages
We finance the acquisition and rehab with our rehab loan programs, then refinance into a long-term DSCR loan once the property is stabilized. One lender, two stages, seamless execution.