Buy, Rehab, Rent, Refinance, Repeat
How does the BRRRR method work with a DSCR loan?
Buy a property below value, Rehab it, Rent it, then Refinance into a long-term DSCR loan based on the new appraised value, and Repeat. The refinance is typically capped around 75% of appraised value for cash-out, and some lenders require a seasoning period before using the new value.
- Free BRRRR calculator: model purchase, rehab, ARV, DSCR refi, and cash left in the deal.
- See cash-on-cash, DSCR, and infinite-return potential.
- Every figure shown is an estimate for business-purpose investment property financing only — not an offer or commitment to lend.
- Simply Approved Mortgages is a licensed mortgage broker (NMLS #2620881), licensed for residential lending in Florida and Colorado and arranging business-purpose investor loans across our approved 37-jurisdiction footprint.
1. Acquisition
2. Bridge / hard-money loan
3. DSCR refinance
4. Rent & expenses (after refi)
BRRRR loan vs. other investor financing
The two loans in a typical BRRRR deal.
| Feature | Short-term purchase/rehab loan | DSCR cash-out refinance |
|---|---|---|
| Purpose | Acquire and renovate | Pay off short-term debt, pull equity |
| Qualifies on | Deal, experience, after-repair value | Rent vs. PITIA |
| Term | Months | 30 years |
| Leverage basis | Purchase + rehab cost | New appraised value (cash-out capped ~75%) |
BRRRR worked example
A sample distressed duplex renovated and refinanced.
- Purchase + rehab
- $260,000
- After-repair appraisal
- $360,000
- 75% cash-out loan
- $360,000 × 75% = $270,000
- Cash recaptured (before costs)
- $270,000 − $260,000 = $10,000
Outcome: In this sample, the refinance recovers all invested capital before closing costs.
Illustrative only. Not a rate quote, lock, offer, or commitment to lend. Binding terms appear on your Loan Estimate.
Live DSCR pricing for the refinance leg
These are actual pricing responses returned for a sample business-purpose DSCR scenario on non-owner-occupied investment property — rate, APR, borrower points or lender credit, estimated principal and interest, and lock period from the same quote. Pricing changes intraday and is not a loan approval, commitment, or guarantee of financing.
Live pricing unavailable — no current pricing response.
Get My Live DSCR Rates
The cards above are featured examples from the current snapshot. Enter your own property, credit tier, leverage and rent to see every eligible option for your deal.
Rate & Pricing Disclosure: This quote is an indication for the scenario entered and the pricing available at the time shown. Rates and terms are subject to change without notice and may change or may not be available at commitment or closing. This is not a rate lock, loan approval, commitment to lend or offer of credit. APR reflects applicable borrower-paid finance charges and pricing credits for this quote and may be the APR returned with the quote or our own audited calculation where verified borrower-paid finance charges outside the quoted price apply. Additional lender and third-party costs may apply and may not be included in the APR. Payment shown is principal and interest only and excludes taxes, insurance, HOA dues and other applicable costs, so your actual payment will be higher. Simply Approved Mortgages LLC is a mortgage broker, not the funding lender. Business-purpose, non-owner-occupied investment property only. Equal Housing Opportunity.
APR reflects applicable borrower-paid finance charges and pricing credits for this quote. Depending on the option, the APR shown is either the APR returned with that quote or our own audited calculation, used where verified borrower-paid finance charges outside the quoted price apply. Other lender and third-party costs may apply and may not be included in the APR.
Estimated payment is principal and interest only and does not include property taxes, insurance, HOA dues, flood insurance, escrows or other applicable costs.
Compare loan officer compensation on your investor loan quote
Loan officer compensation is part of the cost of a mortgage. Simply Approved Mortgages' lender-paid compensation is 1.5% of the loan amount. Enter the compensation shown on another lender's quote to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs.
A lower payment can improve your property's debt service coverage ratio (DSCR) and monthly cash flow.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank's retail pricing.
Illustration only, not an offer of credit or a Loan Estimate. Simply Approved Mortgages is a mortgage broker (NMLS #2620881), not a direct lender. Lender-paid compensation is paid by the wholesale lender, not directly by you, and a lower compensation figure does not by itself guarantee a lower rate or lower closing costs. Actual rate, fees and credits depend on credit, property, loan program and market conditions. Business-purpose investor loans in eligible states; consumer residential lending in FL and CO only.
How the BRRRR loop works
- Buy a distressed property under market using a bridge / fix-and-flip loan (typically 85–90% of purchase + 100% of rehab).
- Rehab to force appreciation. The gap between your all-in cost and ARV is where BRRRR profit is created.
- Rent the property at market to establish DSCR and season the asset.
- Refinance with a DSCR loan at 75% of ARV. If ARV is high enough, the refi pays off the bridge and returns most or all of your cash.
- Repeat with the same capital on the next deal.
Compare the deal strategies
Same property, different plan — and the plan decides the financing. These are the three comparisons investors run most often before they write an offer.
DSCR Loan vs BRRRR Strategy
BRRRR is a strategy; a DSCR loan is a product. Investors buying a rent-ready property finance it once with a DSCR loan. Investors buying a distressed property use short-term bridge or rehab capital first, stabilise the rent, then refinance into a DSCR loan at the improved value. The comparison that matters is not which loan is better, but whether the property needs a rehab phase before it can support long-term financing.
| Attribute | Straight DSCR Purchase | BRRRR (Bridge, then DSCR Refinance) |
|---|---|---|
| Property condition at close | Rent-ready | Distressed or under-improved |
| Number of financings | One | Two — short-term, then DSCR takeout |
| Qualifies on | Rent vs PITIA (DSCR ratio) | Asset and plan first, then rent vs PITIA at refinance |
| Value used at refinance | Purchase price or appraised value | Appraised after-repair value, subject to seasoning |
| Typical timeline | Single closing | Rehab period, lease-up, then refinance |
| Total closing costs | One set | Two sets — budget for both |
| Capital recycled | Down payment stays in the deal | Goal is to recover most of the cash at refinance |
| Main risk | Rent comes in below underwriting | Appraised value or rent falls short and cash stays trapped |
Programs are arranged in 37 states and the District of Columbia for business-purpose, non-owner-occupied investment property. Program eligibility, leverage, and terms vary by state, property, and program, and may require an entity borrower. Simply Approved Mortgages LLC is a mortgage broker and arranges — but does not make — loans. Owner-occupied use is not supported. Nothing here is an approval, offer of credit, or commitment to lend; all terms are subject to full underwriting. Equal Housing Opportunity.
Read the full DSCR Loan vs BRRRR Strategy comparison →DSCR Loan vs Fix & Flip Loan
The exit strategy picks the loan. If you intend to hold and rent the property, a DSCR loan gives you a long amortising term priced off the rent the property produces. If you intend to renovate and sell within months, a fix and flip loan funds purchase plus rehab draws on a short interest-only term designed to be paid off at the sale. Using the wrong one is expensive in both directions.
| Attribute | DSCR Rental Loan | Fix & Flip Loan |
|---|---|---|
| Intended exit | Hold and rent | Renovate and sell |
| Typical term | Long-term amortising | Short-term, interest-only |
| Qualifies on | Rent vs PITIA (DSCR ratio) | Deal, budget, and borrower experience |
| Rehab funding | Not included | Held back and released in inspected draws |
| Value basis | As-is appraised value or purchase price | Purchase plus rehab, capped against after-repair value |
| Payment during rehab | Full PITIA from day one | Interest on drawn balance only |
| Prepayment | May carry a prepayment structure | Built to be paid off at sale |
| Speed | Standard rental timeline | Built for competitive, fast closings |
Programs are arranged in 37 states and the District of Columbia for business-purpose, non-owner-occupied investment property. Program eligibility, leverage, and terms vary by state, property, and program, and may require an entity borrower. Simply Approved Mortgages LLC is a mortgage broker and arranges — but does not make — loans. Owner-occupied use is not supported. Nothing here is an approval, offer of credit, or commitment to lend; all terms are subject to full underwriting. Equal Housing Opportunity.
Read the full DSCR Loan vs Fix & Flip Loan comparison →DSCR Long-Term Rental vs Short-Term and Mid-Term Rental Financing
The program difference is not the property — it is how the rent is documented and counted. Long-term rental DSCR uses the signed lease or market rent from the appraiser's rent schedule. Short-term rental programs may consider documented platform revenue or a third-party market report, and mid-term rentals (30 to 364 days) are frequently underwritten at long-term market rent even when the operating plan is furnished monthly tenancy.
| Attribute | Long-Term Rental DSCR | Short-Term / Mid-Term Rental DSCR |
|---|---|---|
| Rent documentation | Lease or appraiser rent schedule | Documented platform revenue or market report, program permitting |
| Income volatility | Low — fixed lease | Higher — seasonal and occupancy-driven |
| Operating expenses | Landlord-standard | Higher: furnishing, cleaning, utilities, platform fees |
| Mid-term treatment | Not applicable | Commonly qualified at long-term market rent |
| Reserves expectation | Standard | Typically higher |
| Local regulation risk | Limited | Material — permits and ordinances can restrict operation |
| Leverage | Program maximum | Often reduced versus long-term rental |
| Best-fit metric | DSCR on contract rent | DSCR on conservative revenue, stress-tested on long-term rent |
Programs are arranged in 37 states and the District of Columbia for business-purpose, non-owner-occupied investment property. Program eligibility, leverage, and terms vary by state, property, and program, and may require an entity borrower. Simply Approved Mortgages LLC is a mortgage broker and arranges — but does not make — loans. Owner-occupied use is not supported. Nothing here is an approval, offer of credit, or commitment to lend; all terms are subject to full underwriting. Equal Housing Opportunity.
Read the full DSCR Long-Term Rental vs Short-Term and Mid-Term Rental Financing comparison →Ready to close a BRRRR?
We pair a fix-and-flip bridge with a same-lender DSCR refi so you don't lose your rate lock between phases.
Get Your Personalized Rate QuoteHow We Evaluate This Scenario
A DSCR file is judged on the property, not your tax returns: qualifying rent divided by PITIA — principal, interest, taxes, insurance, plus HOA and flood where they apply. Most programs use the lesser of the in-place lease rent and the appraiser's market rent, so a lease signed below market usually caps the ratio no matter how strong the comps look.
Three inputs move the outcome more than anything else: rent support on the appraiser's rent schedule (Form 1007 or 1025), the LTV tier, and the credit tier. Dropping leverage by five points or moving up a FICO band frequently changes pricing more than shopping a different lender does.
Before you write an offer, price taxes and insurance at post-sale levels rather than the seller's current bill. In reassess-on-transfer states and in coastal insurance markets, that single adjustment is the most common reason a deal that penciled at contract fails the ratio at underwriting.
Reviewed by Simply Approved Mortgages · NMLS #2620881. Business-purpose investor lending only.
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