Summer Sizzle

Solutions for Your BRRRR Strategy

Finance Every Phase of Your BRRRR Strategy

The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) may help investors recycle capital and grow their rental holdings with less upfront cash than traditional buy-and-hold approaches. Kiavi offers financing for both phases: short-term bridge and fix-and-flip loans for acquisition and rehab, and DSCR rental loans for the refinance and hold.

A Lender for Both Sides of Your BRRRR

Executing BRRRR successfully requires financing that works at each phase, not just one. Kiavi offers bridge and fix-and-flip loans for acquisition and rehab, and DSCR rental loans for the refinance and long-term hold. Our platform and team are designed to support both sides of the strategy, so you're not starting over with a new lender when you're ready to refinance.

One Lender, Both Phases

Start with a bridge or fix-and-flip loan for acquisition and rehab, then transition directly to a DSCR rental loan for the refinance. Your deal history with Kiavi may carry through, so you're not starting over.

Qualify Based on Your Property's Full Potential

Kiavi uses 110% of appraised market rent in the DSCR calculation, which may support a higher loan amount on well-performing properties.

Support at Every Phase

From your first bridge loan through your DSCR refinance, Kiavi's team is available to help you evaluate structures, understand your options, and move your deal forward.

The Four Financing Phases of a BRRRR Deal

A successful BRRRR depends on having the right financing in place at each phase. Kiavi covers both: short-term loans for the buy-and-rehab, and long-term DSCR rental loans for the refinance and hold.

1) Acquisition and Rehab

Kiavi's bridge and fix-and-flip loans are designed for the buy-and-renovate phase. Loan-to-cost and ARV terms vary based on project scope and borrower experience. Apply online and track your loan status in real time through our platform.

2) Rent and Build Equity

Once your property is leased, your DSCR loan refinance timeline begins. Kiavi's team can help you think through refinance timing and how your property's rent treatment may affect qualification.

3) Refinance and Hold

Once your property is stabilized and rented, you may be eligible to refinance into a Kiavi DSCR rental loan. Cash-out refinance may be available after 90 days (or immediately on free-and-clear properties). Rates and terms are based on property cash flow, not personal income.

4) Repeat With Efficiency

Once you've refinanced into a long-term DSCR loan, that capital can be used to fund your next acquisition. There is no cap on the number of rental loans you can hold with Kiavi, and your experience as a borrower could support faster processing on repeat deals.

Estimated ARV: $450,000
Interest Rate: 7.75%
Cash to Close: $45,650

Get a Fast Financing Estimate for Your BRRRR Project

Kiavi's ARV model has been used on thousands of deals and can help you quickly estimate financing for the first phase of your BRRRR project. Enter a property address and rehab scope to get instant estimates for:

• After Repair Value (ARV)
• Cash to Close
• Interest Rate
• Comparable Valuations

Frequently Asked Questions

Get Answers to Your BRRRR Loan Questions

What kind of properties can I invest in with the BRRRR method?

You can invest in a wide range of properties, including single-family homes, condos, PUDs, and 2-4 unit properties. Kiavi's financing options cater to various investment strategies and property types.

What are the benefits of using the BRRRR strategy?

The BRRRR strategy allows investors to build equity, earn passive income, and take advantage of potential tax benefits. It's designed for long-term asset appreciation and higher cash-on-cash returns compared to traditional rental property investments.

Can I use Kiavi's financing for the Rehab phase?

Yes, Kiavi's fix-and-flip and bridge loan options provide up to 100% funding for renovation costs, ensuring you have the capital needed to transform distressed properties into valuable assets.

How does refinancing work with Kiavi using the BRRRR method?

After successfully rehabbing your property, streamline your growth with Kiavi's rental loans. With our competitive cash-out seasoning requirements—to just 90 days for single-asset DSCR rental loans and immediate cash-out for free and clear properties—you can unlock your equity faster.

What if I've acquired multiple rental properties?

Once you've acquired 5 or more rental properties, Kiavi offers rental portfolio loans to streamline your investments under one loan. This option provides operational efficiencies, cost savings, and the flexibility to grow your real estate business.

What should I expect in terms of returns with the BRRRR method?

When executed well, the BRRRR method can significantly increase your cash-on-cash return compared to traditional turnkey investments, thanks to the built-in equity from rehabbing and the strategic use of refinancing.

How does Kiavi's technology enhance the BRRRR process?

Kiavi's advanced tech platform simplifies the financing process, from application to funding, with automation, quick approvals, and real-time tracking. This allows you to focus on scaling your portfolio efficiently.

Want to Learn More About BRRRR?

Check out Kiavi’s guide Breaking Down BRRRR: Your guide to building a rental portfolio quickly and profitably using the BRRRR method. In it, we walk you through the financing process and illustrate the cash-on-cash return of this strategy compared to turnkey investments.