BRRRR (Buy-Rehab-Rent-Refinance-Repeat) pairs perfectly with DSCR. The strategy uses short-term hard money for acquisition and rehab, then DSCR refinance after stabilization. The DSCR refi proceeds recycle into the next deal.
The 5 phases
Buy (hard money, 9.5-12.5% interest, 1-3 points, 12-month term). Rehab (escrow draws over 3-6 months). Rent (lease up, 1-3 months). Refinance (DSCR at 75-80% of stabilized ARV, 30-year amortization). Repeat.
One-stop BRRRR lenders
Lima One Capital, Kiavi, Renovo Financial, Easy Street Capital all offer both hard money acquisition + DSCR rental refi as a coordinated program — simpler than juggling two lenders.
Cash-left-in-deal math
Total acquisition + rehab cost vs. 75% of stabilized ARV. If all-in is under 75% of ARV, the BRRRR returns 100%+ of capital. If higher, some cash remains in the deal.
BRRRR Strategy with DSCR Exit FAQ
5-12 months total: 1-3 months acquisition, 3-6 months rehab, 1-3 months stabilization, then refinance.
Most BRRRR-DSCR lenders require 1.0+ DSCR at refi. The 0.75-0.99 range may be acceptable with rate adjustments.
Yes — DSCR lenders are national. Many active BRRRR investors operate in 5-15 states simultaneously.