BRRRR SNOWBALL PROJECTOR
See how your portfolio grows when you recycle the same capital through multiple deals.
Time Between Deals (months)
WHAT IS BRRRR?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat . Build a rental portfolio without permanently tying up your capital.
THE 5 STEPS
B
Buy Below Market
Target 70-75% of ARV minus rehab costs. Use cash or hard money.
R
Rehab to Force Equity
Renovate to increase value to ARV. Creates the equity spread you'll pull out at refi.
R
Rent to a Qualified Tenant
Most lenders want 6+ months seasoning with a lease in place before cash-out refi.
R
Refinance to Pull Capital
Cash-out refi at 70-75% LTV based on new appraised value. Use proceeds for next deal.
R
Repeat with Recycled Capital
Goal: get 100%+ of your capital back so each deal is fully funded from the last.
KEY METRICS
Cash Left In Deal — How much of your own money stays in after the refi. Goal: $0 or less (money back).
DSCR — Debt Service Coverage Ratio = NOI ÷ mortgage payment. Lenders want 1.25+. Below 1.0 = rent doesn't cover the loan.
Cash-on-Cash Return — Annual cash flow ÷ cash left in deal. If $0 left in, this is infinite — that's the goal.
Cap Rate — Annual NOI ÷ ARV. Measures property yield independent of financing. 6-8%+ solid in most PA markets.
Break-Even Rent — Minimum rent to cover all expenses including mortgage. Rent above this is your profit.
🔑 KIAVI — RECOMMENDED LENDER
BRIDGE LOAN
Rate: ~10-12% tiered by size 90% purchase + 100% rehab 12-24 months
DSCR RENTAL LOAN
Rate: ~7-8.5% 75-80% 1.1x 30yr / ARM
Watch out: Kiavi uses automated underwriting. If your DSCR is tight (1.1-1.2x) a human underwriter at another lender may approve what Kiavi's system won't.
GET PRE-QUALIFIED AT KIAVI.COM →
🏠 PA MARKET TIPS
📍 Montgomery, Delaware, Chester — ARVs $180k-$350k. Strong rental demand near Philly suburbs.
📍 Norristown, Pottstown, Reading — Lower acquisition, higher cap rates (8-12%), watch vacancy.
📍 Seasoning — Most PA lenders want 6-12 months before cash-out refi.
📍 DSCR loans — Qualify on rental income, not W-2. Rates typically 7.5-8.5%.