How to start the BRRRR method?

Line up the refinance lender first, then the short-term financing, then find a property that fits their numbers. The refinance lender's loan-to-value and seasoning rule decide what you can pay, so know them before you make an offer.

Talk to two lenders who do cash-out refinances on rentals. Get their LTV cap, seasoning requirement, qualifying rules and closing costs. Then get a hard money quote: percentage funded, rate, points and term.

Learn the market next. Pull recent sales of renovated properties to set realistic after-repair values, and sales of distressed ones to see what they trade for. If the gap is under 25% including repairs, BRRRR will not return your cash there. Line up a contractor and inspector, then offer at the price that works, usually purchase plus rehab plus soft costs at or below 72% of ARV. Most offers will be declined. The accepted ones are the deals.