CalculateRealEstateROI

Strategy

BRRRR Deep Dive

Capital-recycling strategy combining distressed acquisition, value-add rehab, lease-up, and cash-out refinance.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Acquisition discipline

70% (ARV − rehab) rule provides margin of safety.

Refinance commitment

Pre-qualify exit lender BEFORE acquisition closing.

Velocity loop

Capital recycled in 4–7 months enables 2–4 deals per year.

Examples

  • $60k buy + $35k rehab + $5k carry = $100k all-in; $108k refi at 75% × $145k ARV.

Practical applications

  • Operators with renovation experience.
  • Markets with strong appraisal support post-rehab.

Common mistakes

  • No committed exit lender.
  • Over-rehabbing.
  • Ignoring seasoning rules.