Glossary · RETURNS

BRRRR

Buy, Rehab, Rent, Refinance, Repeat - a strategy for scaling a rental portfolio by recycling capital through value-add and refinance cycles.

BRRRR is a real estate investment strategy where you acquire a distressed property, improve it, rent it at market rates, refinance at the new appraised value to recover your capital, and repeat. The Buy phase is often funded with cash, hard money, or - more efficiently - seller financing. Using seller financing in the Buy phase reduces carrying costs versus hard money (5-6% vs 10-14%) and gives a more flexible balloon timeline. A successful BRRRR cycle recovers 75-100% of invested capital, leaving the investor with a performing rental at minimal net cost.

Related Terms

ARV

After-Repair Value - the estimated market value of a property after all planned renovations are comp

DSCR

Debt Service Coverage Ratio - the ratio of NOI (or rent) to annual debt service, used by lenders to

Hard Money

Short-term, asset-based loans from private lenders, typically used for acquisitions and rehab when s

Refinance

Replacing an existing loan with a new loan - typically to pay off a seller note, lower the rate, or

Seller Financing

A transaction where the property seller provides the loan directly, eliminating the need for a tradi

Apply this in real deals

Command Center models seller-financed acquisitions, balloon timing, NOI projections, and refinance scenarios. Underwrite faster, with confidence.

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