Buy · rehab · rent · refinance · 1–4 units

BRRRR loans: two loans, one deal, and the appraisal decides what comes back.

A BRRRR loan funds the whole cycle as one deal: a short-term rehab loan buys and fixes the property, then a 30-year rental loan pays it off and hands part of your cash back. That refinance is sized on the new appraisal and on DSCR (debt service coverage ratio): the property’s rent for a month divided by its monthly loan payment.

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Loan sizing

One deal, two loans. The refinance is the number that decides it.

WORKED DEAL · DUPLEX BRRRR

Purchase price, duplex: $142,000
Rehab budget: $58,000
Rehab loan: 90% of $200,000 cost: $180,000
Your down payment: $20,000
Points at 1.5%: $2,700
Interest at 10.25% on drawn funds, 7 months: $9,635
Closing (2%) + 7 months of taxes, insurance, utilities: $5,640
Cash you put in: $37,975
Rental loan: 75% of $264,000 ARV: $198,000
New PITIA: $1,368 P&I + $210 taxes + $125 insurance: $1,703
DSCR on $2,300 rent (2 units × $1,150): 1.35
Cash back after $180,000 payoff and $4,950 costs: $13,050

Cash left in the deal$24,925

Rental loan: 30-year fixed at 7.375%, the 2025 median investor rate, with refinance costs assumed at 2.5% of the new loan. The rehab loan pays $122,000 of the price at closing and the full $58,000 rehab in draws of $18,000, $16,000, $14,000 and $10,000 at the end of months 1–4; at 68% of ARV it sits inside the 70–80% caps rehab lenders publish. Illustrative only, not a quote.

Treat a BRRRR as one deal with two loans and one deadline. The rehab loan covers the purchase and the work, a tenant moves in, and a 30-year rental loan pays the rehab loan off. That second loan sets your result: it is sized on the after-repair appraisal, not your price, and on whether the rent covers the new payment. So run the deal backward. Start from a conservative after-repair value and market rent, work out the refinance, then decide what you can offer.

The rehab loan is a short-term, interest-only hard money loan. LendingOne’s fix-to-rent program lends up to 95% of cost. Fix-and-flip programs lend 85–100% of the purchase depending on your track record, fund 100% of the rehab budget, and stop at 70–80% of the after-repair value, or 60–70% for new investors and heavy rehabs. Rehab money is paid in draws after each inspected stage, and interest runs only on what’s drawn. Terms run from 9 months at LendingOne to 12, 18 or 24 at Kiavi and 13, 19 or 24 at Lima One.

The refinance is a DSCR loan, and the ratio is plain division: monthly rent over the new monthly payment of principal, interest, taxes, insurance and any HOA dues, known as PITIA. A ratio of 1.00 means the rent just pays the loan. At 1.35, as on the duplex in the worked deal, it pays it with 35% to spare. Each lender sets a floor: 1.00 at Lima One and RCN, 1.05 at Roc and Civic, 0.80 at Kiavi, 0.75 at LendingOne and Defy. For rent they take whichever is lower, your signed lease or the appraiser’s market figure; Roc and Civic count an unleased unit at 90% of market. Your tax returns don’t come into it.

How much cash comes back is subtraction. The rental loan, capped near 75% of appraised value on a cash-out, pays off the rehab loan and the closing costs; the rest is wired to you. A 75% loan less 2.5% in costs nets about 73 cents per dollar of ARV, so you only recover every dollar if your all-in cost (price, rehab, points, interest, closing and carry) is at or under roughly 73% of ARV. The worked duplex is all-in at $217,975, or 82.6% of its $264,000 ARV, which is why $24,925 stays in. To pull all of it out, it would have to appraise at about $298,100.

Seasoning is how long you must own the property before a lender refinances on the new value rather than your cost. Lima One waives it when you move into its own rental loan; elsewhere, 90 days is the usual line. Kiavi allows a cash-out after 90 days of ownership; Roc and Civic lend on value after 90 days and cap a property owned under 3 months at 80% of total cost basis. On the duplex that cap is $160,000, $20,000 short of the rehab payoff. Some non-QM lenders, Griffin and Defy among them, advertise no seasoning at all.

The clock that matters is the rehab loan’s maturity. The duplex takes 7 months: 4 to renovate, 1 to lease, and about 2 to order the appraisal and close a rental loan that takes 2–5 weeks. On LendingOne’s 9-month term that leaves 2 months of slack, and each month past plan costs about $1,938 here: $1,538 of interest on the full $180,000 plus $400 of carry. Rehab lenders also pay you to stay; the comparison below shows what leaving costs.

Cash back = rental loan − rehab loan payoff − refinance costs · Cash left in = cash you put in − cash back

Low appraisal. Each $10,000 the appraisal misses takes about $7,313 off your cash back. Under about $246,200 the refinance won’t cover the $180,000 payoff plus costs; at $248,000 you get $1,350 back and leave $36,625 in. A rate-and-term refinance at 80% covers the payoff down to about $230,800, with little or no cash out.
Rent shortfall. If the appraiser puts market rent at $1,025 a unit instead of your $1,150 leases, qualifying rent drops to $2,050 and the DSCR to 1.20. Most lenders still approve that, but after a 25% set-aside for vacancy, repairs and management the duplex runs about $165 a month short. Total rent under $1,703 fails a 1.00 floor; under $1,788 it fails Roc and Civic’s 1.05.
Rate move. Your refinance rate is set months after you buy. If 30-year rates go from 7.375% to 8.125% in that time, the payment rises about $103 a month, the DSCR slips from 1.35 to 1.27, and $22 a month of cash flow after the set-aside becomes an $80 loss.
Overruns. The rehab holdback is fixed at closing. A $9,000 overrun comes out of your pocket and lifts cash left in from $24,925 to $33,925, unless the extra work also lifts the appraisal.

Deal checklist

What each loan in a BRRRR needs from you.

You qualify twice, so check both halves before you sign a purchase contract. Figures are as lenders published them in October 2026.

Property: 1–4 unit residential investment property, including townhomes and PUDs. Roc and Civic don’t lend on rural property.
Rehab loan: credit: 600–660 minimum on fix-and-flip programs; 660 at Lima One, 600 at Easy Street.
Rehab loan: leverage: 85–100% of the purchase depending on experience, plus the full rehab budget, up to a 70–80% ARV ceiling. New investors and heavy rehabs see 60–70% of ARV.
Rehab loan: experience: None required at several lenders. Lima One wants one investment exit in the last 36 months. More completed deals earn more leverage and a lower rate.
Rehab loan: term: Interest-only: 9 months on LendingOne’s fix-to-rent loan, 12, 18 or 24 months at Kiavi, 13, 19 or 24 at Lima One.
Scope of work: A line-item rehab budget. Draws release after each inspected stage, within 24 hours at Lima One and 48 at Easy Street.
Refinance: credit: 620–680 minimum on DSCR loans; the highest leverage tiers start at 700–740.
Refinance: rent test: Minimum DSCR of 1.00 at Lima One and RCN, 1.05 at Roc and Civic, 0.80 at Kiavi and 0.75 at LendingOne and Defy, on the lower of lease and market rent.
Refinance: leverage: About 75% of appraised value on a cash-out; 75–80% on a rate-and-term refinance.
Seasoning: Often waived when the rehab lender refinances; 90 days at many outside lenders; none at some non-QM lenders.
Entity: Roc, Civic and Lima One require an entity on their rental loans; LendingOne’s fix-to-rent allows LLCs and trusts with guarantees. Close the rehab loan in the name that will own the rental.
Loan size: Rehab loans about $50,000 to $5 million; DSCR refinances about $70,000 to $4.5 million.

Contract to closing

Four moves to get your BRRRR funded.

Underwrite the exit firstBefore you make an offer, check that 75% of a cautious ARV clears the payoff and costs, and that market rent clears the new PITIA. The BRRRR calculator runs both.
Send us the dealAddress, price, rehab budget and target rent. A loan specialist calls back with rehab-loan terms and a refinance plan, seasoning included.
Renovate on draws, then leaseEach finished stage is inspected and paid. Sign leases at market rent before the refinance appraisal.
Refinance outThe appraisal sizes the rental loan. It pays off the rehab loan and closing costs, and the rest comes back to you for the next deal.

Cost of the money

What the two loans cost, priced as one deal.

A cheap rehab loan can cost you on the refinance, so price the pair. Ranges are lender-published or 2025 HMDA medians, as of October 2026.

Rehab loan rate: HMDA data put 2025’s median short-term investor rate at 10%. The non-bank median was 10.45%, and half of those loans fell between 9.75% and 11%. Advertised starting rates ran about 7.75%–9.24% in October 2026.
Rehab loan points: 0–2 points. Easy Street adds a $1,995 doc fee; Lima One lets you defer origination until you exit.
Rental loan rate: For a 30-year fixed, Griffin advertised from 7.125% on October 14 and Defy’s best case was 7.375% on October 23 (740+ credit, 75% LTV). Total Quality Lending showed 6.875%–7.25% on October 26 for 800 credit at 75% LTV, with points. The 2025 median on 30-year investor loans was 7.375%.
Refinance closing costs: A new appraisal, title, lender fees and any points. The worked deal assumes 2.5% of the new loan. LendingOne includes the appraisal free when it refinances its own fix-to-rent loan.
Staying with the rehab lender: LendingOne: up to 0.5% off the rental rate and 50% off origination. Lima One: up to 50% off origination, with seasoning waived.
Leaving the rehab lender: Refinance away from LendingOne and it charges 1 extra point when its fix-to-rent loan pays off: $1,800 on $180,000.
Prepayment on the rental loan: Expect 5-4-3-2-1 unless you pay up in rate for a shorter schedule or none. Kiavi publishes no penalty after year 3.
Time to close: Rehab loans close in about 1–3 weeks; DSCR refinances take about 2–5.

Where your deal fits

For investors who want the same cash to buy the next door.

Investors recycling capitalYou want the down payment and rehab money back out to fund the next purchase. The refinance appraisal decides how much of it returns.

Auction and cash buyersPaid cash to win the deal? Kiavi’s fix-and-flip program can restore your cash position within 6 months of purchase.

Duplex to fourplex buyersEvery unit’s rent goes into one DSCR at the refinance, and Civic will refinance a 2–4 unit property with one unit still empty.

Self-employed investorsThe rental loan qualifies on the rent. LendingOne’s fix-to-rent program asks for no W-2s or tax returns, so deductions on your return can’t cut the loan size.

Flippers keeping the good onesSame rehab loan, different ending. When a flip pencils better as a rental, refinancing with the rehab lender can skip seasoning and cut fees.

Side by side

Refinance with the rehab lender, or take it elsewhere?

The rental loan can come from the lender that funded the rehab or from any DSCR lender. The choice changes your wait and your fees.

Item	Rehab lender refinances	Outside DSCR lender
Seasoning	Often none; Lima One waives it	90 days at many lenders; none at some non-QM lenders
Refinancing in the first 3 months	Sized on the new appraisal	Roc and Civic cap it at 80% of total cost basis
Origination	Up to 50% off at LendingOne and Lima One	Full price
Rate	Up to 0.5% off at LendingOne	Whatever that lender’s grid says on the day
Appraisal	Free with LendingOne’s refinance	A new one, at your cost
Exit charge on the rehab loan	None	1 point at LendingOne: $1,800 on $180,000
Pick it when	Your schedule is tight or you need out before 90 days	Another lender’s rate or leverage beats the incentives

Scroll sideways for the other columns →

Send us the deal

Buying to rehab, rent and refinance out? Start here.

Your name and phone come first. After that it’s mostly taps: what the property is, how much you need, a credit band, the ZIP. Then a loan specialist phones you to go over the numbers.

About a minute from first tap to sent
Applying doesn’t pull your credit
A loan specialist phones to go over it
Investment property only, never your own home

Straight answers

BRRRR loans: what investors ask before they commit.

What is a BRRRR loan?

It’s the financing behind buy, rehab, rent, refinance, repeat, and it is usually two loans. A short-term, interest-only rehab loan buys the property and funds the renovation in draws. When the work is finished and the units are leased, a 30-year DSCR rental loan, sized on the new appraisal and the rent, pays the rehab loan off and returns part of your cash.

What DSCR do I need to refinance a BRRRR property?

Divide the rent by the new monthly payment, taxes, insurance and HOA dues included. Published minimums in October 2026 ran from 0.75 at LendingOne and Defy and 0.80 at Kiavi to 1.00 at Lima One and RCN and 1.05 at Roc and Civic. On a $1,703 payment, 1.00 takes $1,703 of rent and 1.05 takes $1,788.

How much cash do you get back from a BRRRR refinance?

The rental loan, minus the rehab payoff, minus refinance costs. On our duplex, 75% of a $264,000 appraisal is $198,000; after the $180,000 payoff and $4,950 of costs, $13,050 comes back against $37,975 put in. You recover everything only when your all-in cost is at or under about 73% of the appraised value.

How long do I have to own the property before refinancing?

That wait is called seasoning, and it depends on who refinances. A rehab lender moving you into its own rental loan often waives it. Outside DSCR lenders commonly want 90 days before they lend on the new appraised value, and Roc and Civic cap a property owned less than 3 months at 80% of total cost basis. Some non-QM lenders skip it entirely.

What credit score do I need for a BRRRR?

You have to clear two lenders. Fix-and-flip programs publish minimums of 600–660 for the rehab loan; DSCR lenders publish 620–680 for the refinance, with their best leverage starting around 700–740. Pass the first and fail the second and you’re stuck on an interest-only loan with a maturity date, so check both before you buy.

Do I need experience to BRRRR?

Not always. Several rehab lenders fund borrowers with no completed deals, though a longer record earns more leverage and a lower rate; Lima One wants one investment exit in the last 36 months. The DSCR refinance usually asks for none. First-timers doing a heavy rehab often see 60–70% of after-repair value instead of 70–80%.

What happens if my BRRRR appraisal comes in low?

The rental loan drops 75 cents for every dollar of lost value, and your cash back drops with it. On our duplex each $10,000 under $264,000 costs about $7,313, and below about $246,200 the refinance can’t cover the payoff plus costs. Then you bring cash, switch to a rate-and-term refinance at up to 80%, or sit on the rehab loan and appraise again.

What if the appraiser’s rent is lower than my lease?

Most DSCR lenders qualify you on the lower of the two, so the appraiser’s figure wins. Kiavi uses the lower of your lease and 110% of appraised market rent. On our duplex, a $2,050 market rent against $2,300 of leases drops the DSCR from 1.35 to 1.20: still approvable at most floors, but the cash flow turns negative once you set aside reserves.

Do I need tenants in place before the BRRRR refinance?

It helps the numbers. Roc and Civic count an unleased unit at 90% of market rent, and Civic will refinance a 2–4 unit property with no more than one unit vacant. On our duplex, one empty unit means $2,185 of qualifying rent and a 1.28 DSCR instead of 1.35 with both units leased. Get leases signed before the appraisal if you can.

How do rising rates hurt a BRRRR?

Your refinance rate gets set months after you buy, so a rate move lands at the worst moment. On a $198,000 rental loan, a rise from 7.375% to 8.125% adds about $103 a month to the payment. Our duplex still clears the lender’s test at 1.27, but its cash flow after a 25% set-aside goes from $22 a month to an $80 loss.

Can I BRRRR a house I bought with cash?

Yes. Kiavi’s fix-and-flip program offers to restore your cash position within 6 months of purchase. Past that, a DSCR cash-out refinance is sized on the appraised value, usually at up to about 75%. Most lenders want 90 days of ownership first, though Kiavi allows a cash-out on a free-and-clear property without waiting the 90 days.

What term does a BRRRR rehab loan have?

Anywhere from 9 to 24 months at the lenders we checked. LendingOne’s fix-to-rent matures at 9; Kiavi writes 12-, 18- and 24-month terms and Lima One 13-, 19- and 24-month ones. Total the renovation, the lease-up and a refinance that takes 2–5 weeks to close, then leave slack. On our duplex each month past plan costs about $1,938 in interest and carry.

Should I refinance with my rehab lender or a different one?

Price both. Staying usually means no seasoning and lower fees: LendingOne offers up to 0.5% off the rental rate and half off origination, Lima One up to 50% off origination. Leaving has a price too, since LendingOne adds a point to its payoff, $1,800 on a $180,000 loan. An outside lender wins only if its rate or leverage beats that.

Can I use a BRRRR loan on a home I’ll live in?

No. Both loans in a BRRRR are business-purpose credit for rental property that you and your relatives won’t occupy. If you plan to move in, even into one side of a duplex you’re renovating, speak with a residential mortgage lender about an owner-occupied purchase or renovation loan instead.

Other ways to fund the deal

Where these numbers come from (15)Checked October 26, 2026

Each rate, limit, fee and timeline on this page is a range we took from lender rate sheets, published program terms and public lending data, dated as listed. Read them as a picture of the market rather than a quote. What a lender offers on your deal turns on the house itself, your credit score and how many projects you have finished.