What Is the BRRRR Strategy?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat — a method used by portfolio investors to recycle the same capital across multiple deals. Instead of leaving equity trapped in a finished property, you refinance out the equity after stabilization and redeploy it into the next acquisition.

The refinance step is where most investors hit a wall. Hard money and private loans are expensive and short-term. The DSCR cash-out refinance is how you exit them — at a long-term fixed rate, with no income documentation, and up to 75% of the appraised value back in your pocket.

The BRRRR Refinance Flow

Buy → Acquire distressed or undervalued property with hard money, private lending, or cash.
Rehab → Renovate to increase value and bring to rentable condition.
Rent → Place a qualified tenant. Most DSCR programs require an executed lease before funding.
Refinance → Pull up to 75% of after-repair value (ARV) as cash. Retire the hard money debt.
Repeat → Redeploy the cash-out as down payment on your next deal.

Example: Purchased for $180K + $40K rehab. ARV = $300K. 75% LTV cash-out = $225,000. Pay off $215K hard money balance. Net $10K cash back — plus a 30-year fixed DSCR loan replaces 11% hard money debt.

Cash-Out DSCR Requirements (2026)

Min. FICO
640
Slightly higher than purchase
Max LTV
75%
Of appraised ARV
Min. DSCR
1.0x
On new payment
Tenant
Required
Executed lease at closing
Seasoning
0–12 mo
Scenario-dependent
Reserves
12 mo
PITIA post-close

Seasoning Requirements Explained

Seasoning is how long you must own a property before a lender will do a cash-out refi based on the new appraised value rather than your purchase price.

BRRRR Cash-Out FAQ

Do I need a tenant in place to do a cash-out refi?+

Most DSCR cash-out programs require an executed lease at closing since the DSCR needs an actual rent figure. Some programs accept a market rent appraisal without a tenant, but terms are less favorable.

Can I do a cash-out refi on a property I've owned for years?+

Absolutely — DSCR cash-out refinances work for long-held properties too, not just BRRRR exits. If you've built equity in a rental and want to pull it out without income docs, the same program applies.

What's the difference between rate-and-term and cash-out refi?+

A rate-and-term refinance replaces your existing loan at a new rate or term — no cash out. A cash-out refinance increases the loan balance above what you owe so you receive the difference as cash. Cash-out has slightly higher rates and lower max LTV.

Ready to see if your deal qualifies?

Get a same-day eligibility answer — no credit pull, no obligation.

Apply Now — Free →