Module 18 — Advanced Financing

Topic 18.1: The BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat)

The BRRRR method is a strategy that combines value-add investing with a cash-out refinance to build a portfolio with little of your own money left in each deal.

1. Buy: Purchase a distressed property (that needs work) at a discount.
2. Rehab: Renovate the property to force appreciation.
3. Rent: Place a tenant in the newly renovated property at a top-market rent.
4. Refinance: After a "seasoning period" (typically 6-12 months), do a cash-out refinance based on the new, higher appraised value.
5. Repeat: Use the cash you pulled out from the refinance as the down payment for the next property. This is an advanced and capital-intensive strategy, but it's one of the fastest ways to scale.

Topic 18.2: Using a HELOC or Self