By Calvin Hexter, Calvin Realty/ Exp Realty
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat — a strategy designed to scale real estate portfolios by recycling capital rather than constantly injecting new funds.
Buy
Success begins at acquisition. Properties must be purchased below intrinsic value. Overpaying eliminates the strategy before it starts.
Rehab
Renovations should be functional and targeted. The goal is value creation, not luxury. Over-renovation is one of the fastest ways to kill returns.
Rent
Stabilization matters. Strong tenants and realistic rents protect cashflow and refinance outcomes.
Refinance
Refinancing is based on appraised value, not renovation cost. Conservative assumptions are critical.
Repeat
BRRRR only works when capital is preserved and redeployed intentionally.
This strategy rewards discipline and punishes optimism.