BRRRR Method Explained: Build Wealth Through Buy, Rehab, Rent, Refinance, Repeat

Description: The BRRRR strategy is a powerful way to build long-term wealth in real estate. Learn step-by-step how to Buy, Rehab, Rent, Refinance, and Repeat, with calculators to analyze costs, potential rental income, and refinancing returns. Powered by MyDoorsPro.

Step 1: Buy the Right Property

Start by finding a property below market value. Consider foreclosures, auctions, or motivated sellers. Ensure the purchase price allows for rehab and positive cash flow.

Step 2: Rehab the Property

Renovate to maximize value. Focus on high ROI upgrades like kitchens, bathrooms, and curb appeal. Keep costs realistic and create a budget for unexpected expenses.

Step 3: Rent the Property

Once rehab is complete, rent the property to tenants. Aim for strong cash flow relative to your investment. Use our NOI and Cash-on-Cash calculators below to measure potential returns.

Step 4: Refinance the Property

After stabilizing rent, refinance the property based on its new after-repair value (ARV). Pull out equity to recoup your initial investment and fund the next property.

Step 5: Repeat

Use the cash-out from refinancing to fund the next BRRRR deal. With each successful cycle, your portfolio grows, and your cash flow compounds.

By following the BRRRR method carefully, you can build a portfolio of rental properties with minimal ongoing personal cash investment. Always analyze numbers, market conditions, and risk factors before committing.