DSCR Loans for BRRRR
Buy, rehab, rent, refinance, repeat. The DSCR loan is usually the "refinance" step that makes the strategy work.
The five steps
- Buy a property below its finished value, often with cash, hard money or a bridge loan
- Rehab it to raise the value and the rent
- Rent it to a qualified tenant
- Refinance into a long-term DSCR loan based on the new value and rent
- Repeat with the cash that comes back out
Where deals get stuck
- Seasoning: some programs want the property owned for a set time before using the new value
- Appraisal: the after-repair value has to be supported by real comparable sales
- Rent: the new payment still has to be covered by the rent
Model it first
Use the BRRRR calculator to see how much cash stays in the deal and whether the refinance payment works.
Have a deal like this?Get the capital paths that fit, free.
Put it on the desk →Free deal review
See if your deal works.
No obligation. Tell us about the property and what you need. It takes about two minutes.
Put a Deal on Our Desk →