Key Takeaways
- Five BRRRR phases span 8-14 months total.
- Wholesale channels provide the highest volume of suitable deals.
- BRRRR acquisitions must satisfy both capital recovery and cash flow tests.
- Short-term financing must extend beyond the seasoning period.
Executing a BRRRR project requires managing five sequential phases. This track provides detailed workflows for each phase.
The Five BRRRR Execution Phases
Phase 1: Buy (2-6 weeks)—source, analyze, close with short-term financing. Phase 2: Rehab (4-16 weeks)—renovate for durability and appraisal value. Phase 3: Rent (2-6 weeks)—market, screen, place tenant. Phase 4: Refinance (4-8 weeks)—prepare documentation, appraisal, close long-term loan. Phase 5: Repeat—deploy recovered capital. Total cycle: 8-14 months.
Acquisition Strategies for BRRRR
Wholesale channels provide the largest volume at 25-35% below ARV. Direct-to-seller marketing offers 20-40% discounts. MLS extended DOM properties can be negotiated 10-20% below. Finance with hard money (10-14%, 1-3 points) or private money (8-12%).
| Source | Discount | Speed | Competition |
|---|---|---|---|
| Wholesale | 25-35% below ARV | 14-30 days | Low |
| Direct-to-Seller | 20-40% | 14-45 days | Very Low |
| MLS (Extended DOM) | 10-20% | 30-45 days | Moderate |
| REO/Bank-Owned | 15-25% | 30-60 days | Moderate-High |
| Auction | 20-35% | Same day | High |
BRRRR acquisition sources
Short-Term Financing
Hard money covers 70-90% of purchase and 100% of rehab. Private money may offer better terms. HELOCs provide low-cost capital. Short-term financing must extend 2-3 months beyond the seasoning period.
Key Takeaways
- ✓Five BRRRR phases span 8-14 months total.
- ✓Wholesale channels provide the highest volume of suitable deals.
- ✓BRRRR acquisitions must satisfy both capital recovery and cash flow tests.
- ✓Short-term financing must extend beyond the seasoning period.
Sources
- BiggerPockets — BRRRR Execution Timeline(2025-01-15)
- ATTOM Data Solutions — Renovation ROI Report(2025-01-15)
Common Mistakes to Avoid
Starting rehab before securing reliable refinance options
Consequence: Discovering after renovation that no lender will refinance at needed terms
Correction: Pre-qualify with 2-3 DSCR lenders before closing on the purchase.
Not accounting for holding costs during rehab and seasoning
Consequence: Hard money interest and insurance erode projected returns by $3,000-$8,000
Correction: Include 8-14 months of carrying costs in the deal analysis.
Test Your Knowledge
1.What is the typical BRRRR timeline from purchase to repeat?
2.What is the first phase of the BRRRR process?
3.What makes the Buy phase successful?