# BRRRR Strategy Financing: How to Fund Buy, Rehab, Rent, Refinance, Repeat



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BRRRR Strategy Financing: How to Fund Buy, Rehab, Rent, Refinance, Repeat

The BRRRR strategy requires two loans. Here's how to finance each phase — bridge loan for the buy and rehab, DSCR loan for the long-term hold.

The BRRRR strategy requires two loans. Here's how to finance each phase — bridge loan for buy and rehab, DSCR loan for the long-term hold.

BRRRR Strategy: How to Finance Buy, Rehab, Rent, Refinance, Repeat

The BRRRR strategy requires two loans. Here is how to finance each phase with a bridge loan for the buy and rehab, then a DSCR loan for the long-term hold.

## What loans do you need for a BRRRR deal?

A BRRRR deal requires two separate loans. The first is a short-term bridge loan (also called a hard money loan) that covers the property acquisition and renovation costs. Bridge loans typically offer up to 90% loan-to-cost, have 12 to 18 month terms, and are interest-only. The second is a DSCR (Debt Service Coverage Ratio) loan, which is a long-term 30-year fixed-rate mortgage that refinances the bridge loan once the property is renovated and leased. The DSCR loan qualifies based on the property's rental income, not your personal income, and is typically issued at 75-80% of the after-repair value.

How long do you have to wait before refinancing a BRRRR property?

The waiting period before refinancing depends on the DSCR lender's seasoning requirements. Many lenders require a minimum of 3 months (90 days) of ownership before they will use the new appraised value for the LTV calculation. Some lenders have 6-month seasoning requirements, while a few have no seasoning requirement at all, allowing you to refinance as soon as the rehab is complete and the property is leased. Practically, most BRRRR deals take 4 to 7 months from bridge loan closing to DSCR refinance closing, accounting for the renovation, leasing, and refinance application process.

## What ARV spread do you need to make BRRRR work?

## Can you do a BRRRR with a property you already own?

Yes, you can execute a BRRRR strategy on a property you already own. If you own a property free and clear or with existing equity, you can take out a bridge loan or cash-out refinance to fund the renovation phase. Once the renovation is complete and the property is leased, you refinance into a DSCR loan based on the new appraised value. The key difference is that you skip the acquisition phase since you already own the property. Many investors use this approach to rehab underperforming properties in their existing portfolio, force appreciation, and pull equity out to fund new acquisitions.

Loan-to-Cost (LTC): Up to 90% of total project cost, covering both the purchase price and renovation budget

After-Repair Value (ARV): Lenders typically cap total loan at 70-75% of the projected after-repair value

Loan term: 12 to 18 months, giving you time to complete renovations, lease the property, and season before refinancing

Renovation draws: The rehab portion of the loan is disbursed in draws as work is completed and inspected

Interest-only payments: Most bridge loans are interest-only during the loan term, keeping your carrying costs low

No income verification: Bridge lenders underwrite the deal, not your personal income