BRRRR is an investment strategy designed to minimize long-term capital tied up in any single property:
- Buy — purchase a distressed property below market value
- Rehab — improve to increase value and rental income
- Rent — lease to achieve stabilized income (usually 6+ months)
- Refinance — cash-out refi based on new appraised value to recover capital
- Repeat — use recovered capital to buy the next deal
The goal is to recover most or all of your invested capital while retaining the rental income stream. Works best in markets with strong appreciation and lenders allowing 75–80% LTV cash-out refis.