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THE ROOTS

BRRRR Method

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ProfessionalInvestment & Rental PropertiesInvesting

Definition

The BRRRR method buys below-market properties, renovates, rents them, refinances to extract equity, and repeats. It accelerates wealth by recycling capital.

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About this term

BRRRR is designed to recycle capital by using the refinance step to pull out the cash invested, allowing investors to repeat the process. Success requires finding deals 20-30% below market value, accurate renovation estimates, ability to obtain cash-out refinance loans, and strong cash flow from rental income. This strategy accelerates wealth building by redeploying capital multiple times.

Pro Tip

Ensure refinanced properties maintain positive cash flow. Don't recycle into negative cash flow.

Example

Buy property for $100,000, renovate for $30,000 (now worth $180,000), rent it out ($1,200/month), refinance 80% ($144,000), and recover most initial capital

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