Key Takeaways
- BRRRR success depends on the spread between all-in cost and the ARV-based refinance amount.
- DSCR requirements can limit cash-out amounts even when LTV headroom exists.
- At 7.25% rates, BRRRR math is more challenging—many deals leave capital in the property.
- Total return includes cash flow, principal paydown, tax benefits, and appreciation—not just cash-on-cash.
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Test Your Knowledge
1.In a BRRRR deal, what determines whether you can pull out 100% of your invested capital?
2.What is the typical seasoning period before a BRRRR cash-out refinance on an investment property?
3.Which risk is most specific to the BRRRR refinance step?