Most people think you need a fortune to build a real estate portfolio…
But what if you could buy multiple properties with the same initial investment—without running out of money?
There’s a powerful strategy that lets investors recycle their cash while rapidly building wealth.
And I’m going to show you how to use it.
The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) is a system for purchasing undervalued properties, fixing them up, and pulling out your initial investment—allowing you to keep buying more properties with the same capital.
Here’s how it works:
1. Buy – Find a distressed or undervalued property below market price.
2. Rehab – Renovate it to increase its value and attract good tenants.
3. Rent – Place a tenant and generate rental income.
4. Refinance – Use a cash-out refinance to pull your original investment back out.
5. Repeat – Use that same money to buy the next property!
Why does it work?
The key is forced appreciation—increasing a property’s value through upgrades and renovations.
Once the property is worth more, lenders allow you to refinance at the higher value, giving you cash back while keeping the property.
For example:
Purchase price: $150,000
Renovation costs: $30,000
Total investment: $180,000
New appraised value: $250,000
Cash-out refinance at 75% LTV: $187,500
Your original $180,000 is recovered—ready for the next deal!
Here’s how to get started with BRRRR:
1. Find an Undervalued Property – Look for fixer-uppers in growing neighborhoods.
2. Secure Financing – Hard money loans, private lenders, or HELOCs work well.
3. Budget the Rehab Wisely – Stick to improvements that increase value (kitchens, bathrooms, curb appeal).
4. Work with a Good Appraiser – A higher appraisal means more money to pull out.
5. Repeat and Scale Up – Once you pull your cash out, start hunting for the next deal.
Using BRRRR, investors recycle the same money over and over, scaling up their rental portfolio without constantly saving for new down payments.
If you want to grow your real estate empire fast, this strategy is one of the smartest ways to do it!
