The BRRRR Strategy: How Smart Investors Multiply Their Real Estate Portfolio
Description: The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) is a proven method for building a rental property portfolio quickly, especially with limited cash. Learn how to execute it, maximize returns, and avoid common pitfalls. Powered by MyDoorsPro.
What is the BRRRR Strategy?
- Buy: Purchase a property below market value.
- Rehab: Renovate to increase property value and rental income.
- Rent: Place tenants in the property to generate cash flow.
- Refinance: Pull out your invested capital based on the new value.
- Repeat: Use the cash to buy the next property and repeat the cycle.
BRRRR ROI Calculator
Estimate your potential monthly cash flow and cash-on-cash ROI with the BRRRR strategy:
Estimated Monthly Cash Flow: $0
Cash-on-Cash ROI: 0%
Example: How BRRRR Might Look in Action
| Step | Example Numbers ($) | Notes |
|---|---|---|
| Buy | 150,000 | Distressed property below market value (ARV $200,000) |
| Rehab | 30,000 | Targeted upgrades to increase value |
| Rent | 1,500/month | Generates $18,000 annual cash flow |
| Refinance | 180,000 loan | Based on appraised ARV; pays off initial purchase & rehab |
| Repeat | Use 180,000 to buy next property | Cycle continues, scaling your portfolio |
Tips and Risks
- Focus on properties with high ARV potential.
- Plan renovations for maximum ROI (kitchen, bathrooms, flooring).
- Screen tenants carefully to reduce vacancy risk.
- Unexpected rehab costs can erode returns.
- Market fluctuations can affect refinance amounts and ROI.