The Refinance Playbook – Maximize Your Cash-Out with BRRRR 🏦 🔄
The refinance is the heartbeat of the BRRRR method. It’s where you pull your original investment back out — so you can do it again.
But to make this strategy work long-term, you need to know how to time it, prepare for it, and use the right loan product.
This playbook walks you through everything you need to know.
⏱️ Step 1: Know When to Refinance
Refinancing too early can kill your appraisal. Too late, and you’re sitting on trapped equity.
Ideal Timing:
After rehab is 100% complete
Property is rented at market rate
Lease is signed and in place
At least 1–3 months of rent collected (if DSCR lender requires it)
If you’re flipping to rental, don’t even start the refi until the house is 100% rent-ready.
📋 Step 2: Prep Your Package for the Lender
Lenders want to see:
Signed lease agreement
12-month rent roll (or expected rental income)
Rehab receipts
Before & after photos
LLC docs and business bank statements
Insurance & taxes quote
Pro Tip: Present it like a business case. A clean, organized package gets faster results.
💳 Step 3: Choose the Right Loan Type
Most BRRRR investors use DSCR loans (Debt-Service Coverage Ratio). These loans focus on the property’s income — not your personal W2.
Common Refi Options:
DSCR loans (easy qualification, slightly higher rate)
Conventional cash-out refi (harder to qualify, lower rate)
Portfolio loans (bank-specific)
Compare:
Max LTV (usually 75–80%)
Rate structure (fixed vs. interest-only)
Prepay penalties and seasoning period
🧮 Step 4: Run the Numbers First
Before applying, ask:
Will the new appraised value support your needed loan amount?
Does the rent cover the monthly payment by 1.1x or more?
Will you get all or most of your original investment back?
Goal: Recycle your cash while still generating monthly cash flow.
✅ Final Thoughts
The refinance is what separates a “flip” from a BRRRR win.
Nail the timing. Package your deal like a pro. Choose the right lender and pull out your cash to do it again.