how long to complete the BRRRR process?

Question

Hello - is it possible to complete the entire BRRRR process within a 3 month period? Or does it take closer to 6 months to 1 year to complete the BRRRR process?

River Sava · Answer

Hey Marc -

It is possible to complete the BRRRR process in 3 months, but a lot depends on the specific situation. The rehab timeline is a big factor. If the property only needs light cosmetic updates, 3 months might be doable, but for more extensive renovations, it's going to take longer.

The refinance stage can also be a challenge since many lenders require a seasoning period, often around 6 months, before they’ll allow a refinance based on the new appraised value. However, some DSCR lenders can support a refinance in under 6 months, which can help speed things up.

Market conditions also play a role, including the availability of contractors, appraisers, and lenders. In most cases, 6-12 months is a more realistic timeline, especially for larger rehabs or when you’re trying to maximize the property’s after-repair value. If you’re aiming for 3 months, having a reliable team and the right lenders in place will be crucial to keeping things on track.

More about how DSCRs support BRRRR refis: https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...

Pat Lulewicz · Answer

Lot of people excluding the most important R that differentiates a flip from a rental - the RENT part...financing generally changes if you don't have a tenant or lease. So consider how long the lease-up will take:

Is there so much rental demand that you can show it during the late stages of reno and get a lease signed? This will help start the refi process

Renter timeline for move-in matters: Good renters give 60+ days notice to their current landlord. If you have a finished product, they won't move in for 60 days but your lender requires signed lease and/or move-in for refi...this will delay your refi.

Alex Bekeza · Answer

@Marc Shin We're funding cash out refis for a lot of our most experience BRRRR clients right around day 91 (to pass 90 days of title seasoning) where we get the process started (appraisal, title, application, etc) around day 60 (plus or minus) when they have the place fully renovated and at least listed for rent (we'll use appraisers opinion of market rent to calculate DSCR). That being said, this is mainly doable for folks taking on cosmetic rehabs with great time management/construction management skills. I've personally undertaken BRRRRs that took me 6 months to stabilize but part of that for me is the BRRRRs being an out of state side hustle I suppose.

Ryan Thomson · Answer

Three months is possible but rare. Six to nine months is more realistic for most investors doing a true BRRRR.

The rehab timeline is the biggest variable. Light cosmetics (paint, flooring, fixtures) can wrap in 4-6 weeks. A full gut with plumbing and electrical can run 3-5 months easy, and that's assuming you already have a contractor lined up and materials aren't backordered.

The refinance is where people hit a wall. Most conventional lenders require 6 months of seasoning before they'll appraise based on ARV. DSCR lenders are more flexible and some will do a cash-out refi at 3 months if the property is stabilized and occupied. That's the fastest realistic path to recycling your capital.

The investors I've seen complete a BRRRR in under 4 months usually had all three pieces locked in before closing: contractor with an actual start date, a DSCR lender already pre-screened for short seasoning, and a property with a repair scope that matched the timeline. One loose thread and you're at month 7.

If you're trying to force a 3-month timeline on a property that needs 4 months of work, the math rarely works out. Better to find a lighter-lift deal than to rush a heavy rehab.

Erik Estrada · Answer

It is possible as long as you work with a DSCR lender that does not have any seasoning requirements, Fix and Flip lender that does not have any prepayment penalty, and a quick rehab (generally light cosmetic). The main issue will be getting the property to appraise (some appraisers might give it the same the same value if the rehab is too light).

The quick BRRRR usually works on homes bought under market value

Jake Baker · Answer

@Marc Shin

The timeline for completing the BRRRR process can vary depending on a few key factors, like the condition of the property, your financing strategy, and the speed of contractors. In an ideal scenario, it’s possible to complete the process in about three months—especially if the rehab is minor, you have your financing lined up, and the property rents quickly. Whatever a contractor says, add 4-8 weeks.

Matthew Crivelli · Answer

It depends on how long it takes you to complete the rehab and what type of loan you take for the refinance. Seasoned investors using commercial DSCR loans for the refi are typically completing full BRRR's in 3-6 months. If you go with a conventional loan for the cash out refinance, seasoning periods are longer which draws out the process.

how long to complete the BRRRR process?

how long to complete the BRRRR process?

Most Popular Reply

8 Replies