Planning a BRRRR Funding Sequence
BRRRR — Buy, Rehab, Rent, Refinance, Repeat — is a strategy for recycling capital across rental properties. The appeal is leverage; the risk is that each stage depends on the last. This guide helps you plan the sequence and the capital each stage may need, without assuming a refinance is guaranteed.
Understand the capital at each stage
BRRRR typically uses two different capital products, not one:
The refinance is what recycles your capital — but it's a separate underwriting decision by a separate partner, and it's not guaranteed.
Stress-test the refinance before you buy
The most common BRRRR failure is assuming the refinance will happen on assumed terms. Before you commit to the buy, model the refinance using conservative inputs:
Use the Deal Analyzer's rental and refinance modes to model this — but treat the inputs as your own editable assumptions, not a partner quote.
Plan for the gap
There's a gap between finishing the rehab and completing the refinance — seasoning periods, appraisals, and lease-up all take time. Budget carrying costs (interest, taxes, insurance, utilities) for that gap, plus a contingency.
Have a fallback exit
If the refinance doesn't materialize on the terms you hoped, what's your plan? Common fallbacks: hold with the short-term capital longer (costly), sell, or bring in additional cash. A credible BRRRR plan names the fallback before the buy, not after.
Repeat only when the first one works
The "repeat" only works if the refinance actually recycles capital. Validate the full sequence on one property before scaling. Each partner sets its own seasoning, coverage, and LTV requirements — we confirm those during review rather than assuming.
If you also hold seller-financed real estate notes, selling them is another way to recycle capital into your next project — see our Real Estate Note Evaluations partner for that option.
Ready to request capital?
Planning a BRRRR deal? Submit a real estate request and tell us your sequence — we'll help match the acquisition/rehab and refinance stages with appropriate partners.