Buy, Rehab, Repeat: How Smart Investors Grow Faster

April 4th, 2025

By Angela Martinez, Licensed Real Estate Associate Broker

If you’re serious about building long-term wealth through real estate, the BRRRR method is a strategy worth mastering. It’s not passive. It’s not easy. But when executed correctly, it can turn one smart investment into a portfolio of income-producing properties—and fast.

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It’s a cycle that allows investors to recycle their capital, gain equity quickly, and build a strong foundation of rental properties without constantly injecting new cash into each deal.

Buy: Value Is Made on the Purchase

The first step is identifying a distressed property priced below market value. These are the properties most buyers overlook—ones with structural issues, outdated interiors, or major cosmetic flaws. That’s where the opportunity lies. The goal is to never spend more than 70%–75% of the property’s after-repair value (ARV), including your purchase price and rehab costs.

Rehab: Fix for Function and Value

Rehabbing for BRRRR is different than flipping. You're not trying to create a showroom. You're upgrading for durability, functionality, and long-term rental appeal. Think clean finishes, reliable systems, and smart upgrades that boost appraisal value. Don’t overspend—keep your eye on ROI.

Rent: Cash Flow Starts Here

Once the property is ready, it’s time to lease it out. Reliable tenants are essential. Banks won’t refinance a vacant property, so strong tenant screening is key. Rent comps are just as important—you need to know the market well to ensure the numbers support your refinance goals.

Refinance: Get Your Money Back

This is where BRRRR becomes powerful. After stabilizing the property with tenants, you refinance based on the new, improved value. If you’ve followed the formula, you can pull out most—if not all—of your original investment capital. That capital? It’s now ready to go into the next deal.

Repeat: Scale Your Portfolio

With your capital back in hand, it’s time to repeat the process. Each time you go through the cycle, your knowledge, network, and efficiency grow. And so does your portfolio.

Final Thoughts

The BRRRR method isn’t for everyone. It takes strategy, patience, and a strong team—contractors, lenders, property managers, and a knowledgeable real estate advisor. But if you’re ready to take a hands-on approach to investing and want to build true wealth over time, this method can unlock significant opportunities.

At SVN Innovative Commercial Advisors, we guide investors through strategies like BRRRR every day. If you're curious about applying this model in upstate New York, let’s connect. I’d be happy to help you find the right property—and build a strategy to make it work.