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BRRRR Strategy

Real Estate Terms

Definition

Buy, Rehab, Rent, Refinance, Repeat — a strategy for recycling capital through value-add rental acquisitions.

The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) is a systematic approach to building a rental portfolio while recycling invested capital. An investor purchases a below-market property, completes renovations to increase its value, places a tenant to stabilize income, then executes a cash-out refinance based on the new higher appraised value to recover most or all of the invested capital. The recovered funds are then deployed into the next acquisition. When executed well, BRRRR allows investors to scale rapidly with limited capital. The key risk is the refinance step: if the property does not appraise at the expected value, capital remains trapped in the deal.

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