◈ GLOSSARY · REAL ESTATE
BRRRR Strategy.
A definition, in plain English — with the books that teach it.
Reviewed by ClearValue Editorial Team · Jun 27, 2026
◈ DEFINITION
What it means
Definition
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property cheap, renovate it to force appreciation, rent it for cash flow, then do a cash-out refinance to pull most or all of your capital back out — ideally leaving you with a cash-flowing rental and your down payment recycled into the next deal. It works on paper; in practice rehab budgets blow up, appraisals come in light, and rates move against you.
◈ IN PRACTICE
Example
Buy a distressed house for $120,000 cash. Put $40,000 into rehab. It now appraises for $220,000. Cash-out refinance at 75% LTV = $165,000 mortgage. You've recovered $165,000 of your $160,000 in, and you own a rental with a tenant in place.
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