BRRRR Loans for Real Estate Investors
Buy, Rehab, Rent, Refinance, Repeat. Explore acquisition and renovation financing, then plan a DSCR rental refinance with FundNow Capital. Understand both loans, the costs, and the cash you may recover before you buy.
We Waive the 0.5% Processing Fee
Most investor par rates are around 2%, and that often includes a 0.5% processing fee based on the loan amount. FundNow Capital waives that fee for qualified borrowers so you can move faster, lower your upfront cost, and get your loan done without the usual runaround.
Rental property financing made easy.
Start with the property and your exit strategy, then review the available financing.
Share the Property
Bring the purchase price, rehab budget, expected rent, and planned exit.
Compare Both Financing Phases
Review acquisition terms and the requirements for a future rental refinance.
Complete the Lender Review
Confirm documentation, costs, conditions, and timelines before accepting terms.
What is a BRRRR loan?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. A “BRRRR loan” usually refers to financing an investment strategy, rather than one mortgage that automatically covers every step. A short-term fix and rent loan or bridge loan can help with acquisition and renovation. A separate DSCR rental refinance may provide longer-term financing after the property meets the lender’s criteria.
Unlike a fix and flip, the goal is to keep the property as a rental. Review both loans before buying: the bridge approval is not a commitment to refinance, and future value or cash recovered is not guaranteed.
1.Buy
Evaluate the purchase price, property condition, comparable sales, and local rental demand. Plan both the acquisition financing and the refinance exit before committing.
2.Rehab
Build a written scope of work, contractor budget, contingency, and timeline. Renovation funds may be released through lender-approved draws rather than paid upfront.
3.Rent
Complete the work and establish rental income. Budget for vacancy, management, maintenance, taxes, and insurance—not just the mortgage payment.
4.Refinance
Seek a long-term rental loan after meeting the lender's requirements. The appraisal, rent, ownership seasoning, available equity, and loan limits determine the refinance options.
5.Repeat
Use any net cash recovered only after accounting for payoff, closing costs, and reserves. Recheck cash flow and risk before purchasing the next property.
Illustrative numbers—not a loan quote
BRRRR example: how much cash comes back?
Suppose an investor buys a property for $150,000 and spends $30,000 on renovation. If the lender accepts a completed value of $250,000 and allows a 75% refinance, the new loan would be $187,500. That is the gross loan amount—not the cash the investor receives.
- Purchase price
- $150,000
- Renovation budget
- $30,000
- Purchase + renovation
- $180,000
- Assumed lender-accepted value
- $250,000
- Illustrative refinance at 75%
- $187,500
- Assumed existing loan payoff
- $150,000
- Assumed refinance costs
- $5,000
- Estimated cash received at refinance
- $32,500
Gross proceeds are not net cash.
In this example, $187,500 minus the $150,000 payoff and $5,000 refinance costs leaves $32,500. Assuming the investor paid the $30,000 rehab in cash and borrowed the full purchase price, this would recover that rehab cash with $2,500 remaining before other expenses.
Acquisition fees, interest, taxes, insurance, vacancy, draw fees, and reserves are not included. Different down payments or bridge balances change the result.
What if the appraisal comes in lower?
At a $220,000 accepted value and the same hypothetical 75% limit, the loan would be $165,000. After the same payoff and costs, only $10,000 would be returned—leaving $20,000 of the renovation cash invested, before other expenses.
The 75% limit and $5,000 costs are scenario assumptions, not advertised FundNow terms. Actual value, leverage, payoff, costs, and approval depend on the lender and property.
BRRRR financing requirements to review
Before acquisition and rehab
- Purchase contract, property condition, and available down payment.
- Contractor scope, rehab budget, contingency, and draw requirements.
- Loan term, interest and fees, extension options, and an alternative exit.
- Experience, entity documents, reserves, and lender eligibility.
Before the rental refinance
- Completion status, appraisal, lease or market rent documentation.
- Ownership and loan seasoning, cash-out restrictions, and accepted valuation.
- DSCR, required reserves, payment structure, and prepayment terms.
- Payoff balance, refinance closing costs, and cash flow after refinancing.
FundNow Capital brokers business-purpose investment property financing. Program availability varies by lender, state, property, and borrower. Review rates, fees and terms and lending locations; request written terms for your actual deal.
Further reading
CFPB: appraisals and property valueFannie Mae: conventional cash-out rulesThe conventional guide illustrates why seasoning matters; its rules are not FundNow DSCR or bridge program requirements.
Compare Your BRRRR Financing Options
Compare the acquisition loan and rental refinance separately. Request written terms for your property; eligibility, rates, fees, and available leverage vary by lender and program.
Financing Built for Investor Execution
Plan Your Exit
Consider refinance eligibility, rehab timing, and an alternative repayment plan before taking a short-term loan.
Prepare the Right Documents
Match the purchase contract, scope of work, rent information, and entity documents to the lender's requirements.
Investor-Focused Review
Discuss the property and both financing phases with FundNow Capital, a financing broker—not a tax or legal advisor.
BRRRR Loan Resources
Helpful products and tools for real estate investors financing and scaling rental portfolios.
Frequently Asked Questions
Submit Your BRRRR Deal
Share the property, budget, rent, and exit strategy to explore your financing options.
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Ready to Scale Your Rental Portfolio?
Bring your acquisition budget and rental plan. Explore business-purpose financing with FundNow Capital; approval and future refinance depend on lender requirements.
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