BRRR: A Realistic Strategy for Rental Properties

marketingdept • June 18, 2025

BRRR: A Realistic Strategy for Rental Properties

The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method is a real estate investment strategy that details how to flip a distressed property, rent it out, and then use a cash-out refinance to fund further rental property investments.  The BRRRR method differs from conventional investment strategies in two important aspects:
  1. Targeting already distressed properties
  2. Refinancing the purchased property to invest in another one

B uy

Purchase a property that needs some TLC to get it up to code and ready to rent. Homes that require some additional maintenance are typically more accessible and chapter to purchase.   

R ehab

If the property is distressed, it may require extensive work. Renovate the property to make structural and aesthetic improvements for your future renters.   

R ent

Determine an appropriate rental price and find applicants to rent the home.   

R efinance

Refinance your home based on its new market value. A cash-out refinance allows you to convert your home equity into cash. The cash can be used to purchase another property.   

R epeat

Using the funds from your rental payments and cash-out refinance, you can purchase another property to rehab, rent, and refinance.  

Closing Thoughts


The BRRR method can help provide passive income while building your real estate portfolio over time. However, it takes time and patience to rehab, rent, and refinance a home, so it’s important to consider the pros and cons of the strategy before proceeding.

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