Investor Loan Education
The BRRRR Strategy Explained
Buy. Rehab. Rent. Refinance. Repeat. A stage-by-stage look at how investors combine renovation work and rental financing into a repeatable investment cycle.
The Cycle
Five Stages, One Loop
Each stage has its own requirements, and the financing typically changes as the property moves from a renovation project to a stabilized rental.
Step 1
Buy
Step 2
Rehab
Step 3
Rent
Step 4
Refinance
Step 5
Repeat
Buy
The strategy starts with acquiring an investment property — often one that needs work and is priced accordingly. Investors typically evaluate the acquisition cost alongside the renovation budget and a realistic view of what the finished property could be worth or rent for.
Fix & Flip / Bridge FinancingRehab
The renovation phase is where value is intended to be created. Scope, budget, contractor schedule and a contingency line all matter here, because the rehab determines both the eventual value and how long capital stays committed to the project.
Fix & Flip FinancingRent
Once the work is complete, the property is leased and stabilized. Establishing rental income and documenting market rent is what turns a renovation project into an operating rental property.
Refinance
With the property renovated and producing income, an investor may consider transitioning from short-term financing into longer-term rental property financing when appropriate. Eligibility, valuation and program requirements are reviewed at that time.
DSCR FinancingRepeat
Whatever investment capital becomes available after the refinance may then be redeployed into additional opportunities, which is what allows some investors to run more than one project over time.
Working on a deal?
WJR Equity Lending can review your financing scenario and discuss what options may be available for the property, project and exit strategy.