Fix-to-rent (BRRRR) financing — buy, rehab, rent, refinance

BRRRR — Buy, Rehab, Rent, Refinance, Repeat — is the strategy of forcing equity into a distressed property and then refinancing to pull your capital back out so you can do it again. It requires two loans working together, and the whole strategy lives or dies on how well they are structured to hand off. TSG Capital arranges both sides of that stack and keeps them aligned, so you are not discovering at refinance time that the numbers do not work.

The first loan is short-term rehab capital, much like a fix & flip loan: it funds the acquisition and the renovation budget, sized against the after-repair value (often up to roughly 90% of purchase and 100% of rehab, capped against ARV), released in draws. Once the property is renovated and rented, the second loan — a long-term DSCR cash-out refinance — pays off the rehab loan and returns your invested capital, qualifying on the property's rent-to-payment coverage rather than your personal income, typically up to about 75% of the stabilized value.

The math that makes BRRRR work is the relationship between your all-in cost and the stabilized value: the more equity you create through the rehab, the more of your capital the refinance returns — sometimes all of it. Because we arrange both loans, we can pressure-test that math up front and match you to a rehab lender and a DSCR lender whose terms and seasoning rules line up. Rates and points on both loans vary by deal and are quoted as ranges. One conversation sets up the entire cycle.

Typical terms

Figures below are typical ranges across our lender network — they are not a quote or a guarantee. Your actual terms depend on the lender, the deal, your experience, and the property's location.

Is this loan structure a fit?

Who it's for

• Buy-and-hold investors who want to recycle the same capital across many deals
• Operators who buy distressed, renovate, rent, and refinance rather than sell
• Investors who want one point of contact to align the rehab loan and the refinance
• Entities executing a repeatable, portfolio-building strategy

What to prepare before requesting terms

A complete file is easier for lenders to price and materially reduces avoidable back-and-forth. Start with the items below; a lender may request additional documents after initial review.

Frequently asked questions