Strategies
BRRRR
Buy, Rehab, Rent, Refinance, Repeat. A strategy that recycles capital across deals by refinancing based on the post-rehab value.
Example
Buy $80k. Rehab $30k. ARV $150k. Refi at 75% LTV → pull out $112.5k. Net capital in deal after refi: ~$0. Repeat.
Why BRRRR matters
BRRRR is the highest-leverage strategy in real estate when conditions are right (cheap distressed properties + appraisable rehab gains + capital-friendly refi rates). The trap: most deals fail at the refi step because the appraised ARV doesn't support the planned cash-out.
Run the math on a real deal
TrueCap has a free calculator for this. Paste an address or enter numbers manually — get BRRRR plus all the supporting metrics in 60 seconds.
Try the free BRRRR calculatorRelated terms
ARV (After-Repair Value)
What the property would sell for once rehab is complete. The most important — and most-mis-estimated…
LTV (Loan-to-Value)
Loan amount divided by property value. Most cash-out refi lenders cap LTV at 75% for investment prop…
Cap Rate
Net Operating Income ÷ property value. The unleveraged return a property generates, independent of f…