Question 1

What is the BRRRR strategy?

Accepted Answer

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property below market value, renovate it to increase value, rent it out, then do a cash-out refinance based on the higher after-repair value (ARV). Ideally, the refinance returns most or all of your initial cash, which you use to buy the next property.

Question 2

What is after-repair value (ARV)?

Accepted Answer

After-repair value is the estimated market value of the property after renovations are complete. Lenders use the ARV to determine how much they'll lend on a cash-out refinance. A common maximum is 75% loan-to-value (LTV) based on the ARV.

Question 3

How much cash can I recover in a BRRRR refinance?

Accepted Answer

Cash recovered equals the refinance loan amount minus your total investment (purchase price + rehab costs). If you buy for $120,000, rehab for $30,000, and the ARV is $200,000, a 75% LTV refinance gives you a $150,000 loan — returning your full $150,000 investment. If the ARV is lower, you'll leave some cash in the deal.

BRRRR Calculator

Buy & Rehab

Refinance

Rent

Projections

Cash Recovered

Annual Cash Flow

Cash-on-Cash Return

Cash Left in Deal

Equity Waterfall

Year-by-Year Projection