BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a real estate investment strategy that allows investors to build a rental property portfolio by recycling their capital. The method involves purchasing distressed properties below market value, renovating them, renting them out, refinancing to pull out your initial investment, and then repeating the process with another property.

Purchase a distressed property below market value, typically aiming for 70-75% of the After Repair Value (ARV) minus renovation costs. Renovate the property to increase its value and appeal to tenants. Focus on improvements that maximize ARV while controlling costs. Secure quality tenants to generate passive income and demonstrate the property's cash flow potential to lenders. Obtain a new loan based on the property's increased value (ARV), allowing you to pull out your initial capital and equity. Use the recovered capital to purchase another property and restart the cycle, scaling your rental portfolio.

Build wealth through forced appreciation by improving property value Recycle capital to acquire multiple properties with the same initial investment Generate passive income from rental properties Build equity and long-term wealth through property ownership