By David Parks · eXp Realty · The Apollo Group · 2 min read
BRRRR is an investing strategy where you buy a distressed property, renovate it, rent it, refinance to pull out cash, and repeat. It can build a portfolio, but depends on accurate numbers and execution.
| Key point | What it means |
|---|---|
| Buy | Purchase below market value, often needing repairs. |
| Rehab | Renovate to increase value and rentability. |
| Rent | Find a tenant to create cash flow. |
| Refinance | Take a new loan based on the improved value. |
| Repeat | Use the cash to buy again. |
If you buy well and renovate efficiently, the appraised value may exceed your total costs, letting you recover much of your investment.
Get contractor bids before you buy, estimate conservatively, and keep reserves. Talk with lenders about refinance rules, such as seasoning periods.
BRRRR can be powerful but is not for everyone. Review each deal’s numbers with professionals.
This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.
David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.
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