CalculateRealEstateROI

Strategy

Equity Harvesting

Pulling trapped equity from stabilized assets via refinance to redeploy into new acquisitions.

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

Core concepts

Refi-and-redeploy

Cash-out at 70–75% LTV; redeploy into next acquisition.

Compounding velocity

Same dollar buys multiple properties over time.

Examples

  • $200k trapped equity refi’d → $150k cash out → next BRRRR cycle.

Practical applications

  • Mature SFR portfolios.
  • Late-cycle deleveraging into recovery markets.

Common mistakes

  • Over-leveraging at peak.
  • Pulling equity without next deal lined up.