What is BRRRR and how does DealPrism model it?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It's a real estate investment strategy where you purchase a property that needs work, renovate it, place a tenant, refinance based on the improved value, and use the cash from the refinance to fund your next deal.

The appeal of BRRRR is capital efficiency - instead of leaving your down payment locked in one property indefinitely, you try to pull most or all of it back out through the refinance and deploy it again.

DealPrism models the full BRRRR cycle in two states:

Acquisition state - what the deal looks like when you purchase it, based on your down payment, loan terms, and initial rent assumptions.

Post-refinance state - what the deal looks like after rehab is complete, the property is rented, and you've refinanced at the new appraised value. DealPrism shows your updated cash flow, DSCR on the new loan, how much capital you've recycled out, and how much (if any) remains in the deal.

To use BRRRR analysis in DealPrism, you'll need to enter your rehab budget, your estimate of the property's after-repair value (ARV), and your expected refinance terms. DealPrism does not estimate ARV - that requires local comparable sales data, which you'll need to research or confirm with an appraiser or agent.

BRRRR analysis is available on the Active Investor plan and above.