If you’ve been around the real estate investing world for more than five minutes, chances are you’ve heard someone mention the “BRRRR Method.” No, it’s not about being cold — it’s actually one of the most popular ways investors grow their rental portfolios without constantly needing more cash.
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat, and it’s a smart strategy for building long-term wealth. Let’s break it down step by step in plain English.
🏡 Step 1: Buy
The first move is finding the right property — usually something that’s a bit rough around the edges. Maybe it needs some cosmetic work, or maybe it's been neglected for a while. Either way, you want to buy it below market value so you’ve got some room to add value.
Quick tip:
The numbers need to work. A good rule of thumb is the 70% Rule — buy for no more than 70% of the after-repair value (minus repairs). If the ARV is $200K and you need $30K in rehab, try to get it for around $110K or less.
🔧 Step 2: Rehab
Now the fun (and sometimes stressful) part: fixing it up. The goal is to make the home safe, livable, and appealing to future tenants — without going overboard.
Focus on what matters most:
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Updated kitchen and baths
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New flooring or paint
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Roof, HVAC, or plumbing fixes if needed
Stick to your budget, and don’t aim for perfection — aim for function and value.
🛋️ Step 3: Rent
Once the property is looking good, it’s time to find a solid tenant. This is where your property becomes an income-producing asset.
You’ll want to:
If you don’t want to manage it yourself, this is also when you’d bring in a property manager.
💸 Step 4: Refinance
Here’s where BRRRR really gets powerful. Now that your property is fixed up and rented out, you go back to the bank and refinance it. Since the home is worth more now, the lender will base the new loan on the updated appraised value — not what you originally paid for it.
That means you can often pull out most (or even all) of the cash you originally put in — and sometimes more.
Use that cash to go do another deal.
Heads-up:
Not every lender works with BRRRR investors, so shop around. Some might require you to wait a few months before refinancing, so plan for that “seasoning period.”
🔁 Step 5: Repeat
This is the whole point: take the cash you pulled out from the refinance and go do it again. Over time, you can build a strong portfolio of rental properties using the same chunk of money, just recycled from deal to deal.
That’s the BRRRR Method. Simple on paper — but it takes planning, patience, and a lot of learning by doing.
💬 Final Thoughts
The BRRRR strategy has helped thousands of investors grow their portfolios without needing to save up for a new down payment every time. It’s great for people who want to go beyond just “owning a rental” and actually build a business.
Is it easy? Not always.
Is it worth it? Absolutely — when done right.
If you’re thinking about trying the BRRRR method or just want to learn more from people who are doing it right here in our area, come join us at the Toledo Property Investors Network. We’ve got meetings, events, and people who are happy to share what works — and what doesn’t.