What Is BRRRR?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat, a real estate investing strategy that recycles the same dollars of investor capital across multiple properties. You buy distressed at a discount, force appreciation through renovation, stabilize the property with tenants, refinance to pull your capital back out, then deploy it into the next acquisition.
The strategy lives or dies on the refinance step. That’s where our DSCR cash-out refinance comes in.
The 5 BRRRR Steps and Where We Fit
An honest map of which steps we finance and which steps you need other capital for.
- 1
Buy
Acquire below market, often with cash, hard money, a private loan, or a DSCR purchase loan at acquisition. The goal is to buy at a basis low enough that, after rehab, the after-repair value (ARV) supports a refinance that returns most or all of your capital.
Where we fit: DSCR purchase loans from Total Quality Lending: up to 80% LTV at the top credit tier, credit scores from 640. They work at acquisition when the property already cash-flows. For deep-discount distressed buys that don't cash-flow today, most BRRRR investors use hard money or cash here.
- 2
Rehab
Add value via renovation: kitchens, baths, mechanicals, flooring, exterior. The renovation must lift the property's appraised value enough to justify the refinance math. Track every receipt; the appraiser and lender will both want them.
Where we fit: We don't fund the rehab step. Most investors use cash or a hard money lender here, then refinance with us. DSCR loans are long-term permanent financing, so they don't disburse rehab draws. We're ready when the rehab is complete and the property is rentable.
- 3
Rent
Place a tenant and stabilize. For a DSCR refinance, the property needs to be leased (or rent-ready with a market-rent appraiser opinion of value). Lease + first month's rent collected is the cleanest path.
Where we fit: A signed lease at market rent, plus evidence of rent collection, supports the DSCR ratio underwriting uses to size your refinance. Short-term rentals (Airbnb / VRBO) qualify too. We use 12 months of STR history or AirDNA market data.
- 4
Refinance
Replace your acquisition / rehab capital with a long-term DSCR cash-out refinance. This is the step that recycles your money into the next deal. Get this step right and BRRRR works. Get it wrong (over-leveraged, under-rented, or wrong seasoning treatment) and you're stuck.
Where we fit: This is the step we finance. On eligible loans, there's no seasoning. You refinance on the appraised value as soon as the property is rented or rent-ready, instead of waiting 6 months. Cash-out goes up to 80% LTV and rate-and-term goes up to 85% LTV at the top credit tier.* The top credit tier for cash-out is 740 FICO with a loan up to $2.5M, or 720 FICO with a loan up to $1.5M. Cash-in-hand caps: $500K when LTV is above 65%, $1M when LTV is at or below 65%.
- 5
Repeat
Deploy the cash-out proceeds into the next acquisition. The whole point of BRRRR is that the same dollar of investor capital cycles through multiple deals. Each property becomes self-funding once you've successfully refinanced.
Where we fit: Close in as little as 15 days, so you can cycle into the next deal faster. No 10-property cap (conventional Fannie Mae caps you at 10 financed properties; we don't). Returning-client underwriting fee is waived. Same underwriter handles deal 1 and deal 11.
BRRRR Advantages with Total Quality Lending
- No seasoning on eligible loans: refinance on the appraised value without waiting 6 months*
- Cash-out up to 80% LTV at the top credit tier*
- Rate-and-term up to 85% LTV at the top credit tier, built for hard money exits*
- No personal income docs
- LLC vesting allowed
- Close in as little as 15 days
No Seasoning on Eligible Loans
Most lenders make you wait 6 months after you buy before they'll use the appraised value. Until then, they cap your loan at what you paid. On eligible loans, you don't wait. You refinance on the appraised value as soon as the property is rented or rent-ready, so your capital goes back to work on the next deal.
| Comparison | The usual 6-month rule | Total Quality Lending, eligible loans |
|---|---|---|
| Value used under 6 months of ownership | The lesser of cost or appraised value | Appraised value |
| When you can refinance | After 6 months | As soon as the property is rented or rent-ready |
| Cash-out | Limited by what you paid | Up to 80% LTV at the top credit tier* |
| Rate-and-term | Limited by what you paid | Up to 85% LTV at the top credit tier* |
DSCR Cash-Out Matrix: How Much Can You Pull?
Maximum cash-out LTV depends on your FICO and loan size. Cash-out goes up to 80% LTV at the top credit tier, and the matrix below shows the real numbers.
No seasoning on eligible loans: these maximums apply to the appraised value, even if you bought the property recently.*
| FICO | Loan amount | Max cash-out LTV |
|---|---|---|
| 740 | $2.5M | 80% |
| 720 | $1.5M | 80% |
| 700 | $1M to $1.5M | 75% |
| 700 | $2M | 70% |
| 660 | $1M | 70% |
Cash-in-Hand Caps
Total equity withdrawn cannot exceed $500K when LTV is above 65%, or $1M when LTV is at or below 65%. These caps apply to the final cash to borrower at closing.
Paying off hard money instead of taking cash out? A rate-and-term refinance goes up to 85% LTV at the top credit tier, with no seasoning on eligible loans.*
*Maximum LTVs apply at the top credit tier. No seasoning is available on eligible loans. Loan program, credit score, loan amount, property type and documentation affect eligibility and LTV. Not all applicants will qualify.
Refinancing Out of Hard Money
Hard money gets the deal done, but the clock starts the day you close. If the loan is coming due, the rehab ran over budget or the appraisal came in lower than you planned, a rate-and-term refinance is usually the way out.
On eligible loans, rate-and-term goes up to 85% LTV at the top credit tier, with no seasoning. That can leave more room to pay off the hard money loan in full. The loan qualifies on the property's rent, not your tax returns.
Share your numbers before the loan comes due. Your Loan Advisor will tell you what the property supports before you apply.
BRRRR Loan FAQs
Do You Fund the Rehab Step?
No. DSCR loans are long-term financing, so they don't pay out construction or rehab draws. Most investors fund the rehab with cash or a hard money lender, then refinance with us.
What's the Seasoning Requirement for the Refinance?
On eligible loans, there isn't one. You can refinance on the appraised value right after you buy or finish the renovation, instead of waiting 6 months like most lenders require. Eligibility depends on the loan program, your credit score and the property.
What's the Difference Between a Cash-Out and a Rate-and-Term Refinance?
A cash-out refinance replaces your loan and pays you part of your equity. It goes up to 80% LTV at the top credit tier. A rate-and-term refinance replaces your existing loan, such as a hard money or bridge loan, without pulling out equity. It goes up to 85% LTV at the top credit tier. Both have no seasoning on eligible loans.
What If My Rehab Ran Over Budget or the Appraisal Came In Low?
Tell us early. A rate-and-term refinance up to 85% LTV on eligible loans often leaves more room to pay off a hard money loan than a cash-out refinance does. Share the numbers and your Loan Advisor will tell you what the property supports before you apply.
How Much Equity Can I Pull Out?
Up to 80% LTV at the top credit tier (740 FICO with a loan up to $2.5M, or 720 FICO with a loan up to $1.5M), with no seasoning on eligible loans. Cash-in-hand caps: $500K when LTV is above 65%, $1M when LTV is at or below 65%.
What FICO Score Do I Need for BRRRR Refinancing?
The minimum FICO is 640 with a DSCR of 1.00 or higher. Top-tier 80% cash-out needs 720 or higher at $1.5M, or 740 or higher at $2.5M.
Can I BRRRR Inside an LLC?
Yes. DSCR loans accept LLC vesting at closing. Single-member, multi-member, series and holding LLCs all qualify. Title can be in the LLC's name from the refinance step forward.
How Fast Can the Refinance Close?
Most DSCR refinances close in 15 to 21 days from a complete file, and some close in as little as 15.
Run the BRRRR Refinance Math with Us
Send us the purchase price, rehab spend and target rent. We’ll quote the cash-out refinance in 24 hours.
