The two-step chain
Step one is acquisition and rehab, funded by hard money, a fix-and-flip loan, or a bridge loan — short-term, asset-based money that can take on a distressed property the long-term lenders will not touch yet.
Step two is the refinance. Once the property is renovated, rented, and stabilized, you refinance into a thirty-year DSCR loan based on the new appraised value. If you have forced enough equity, the cash-out covers your original investment and you walk away with little or none of your own money left in the deal.
The one-loan shortcut
A fix-and-rent (bridge-to-permanent) loan combines both steps into a single closing: it funds the purchase and rehab, then automatically converts to a thirty-year DSCR loan once the property is leased. That eliminates a second set of closing costs and the refinance-timing risk — which is why it is often the single best fit for a BRRRR. The matcher above will rank it against the separate-loan path for your deal.
Frequently asked questions
What is the best loan for the refinance step of a BRRRR?
A DSCR loan is the standard BRRRR refinance — it qualifies on the property’s rent, closes in an LLC, and has no property-count cap, so it works no matter how many doors you already own.
How soon can I refinance after rehabbing a BRRRR?
Many DSCR lenders allow a cash-out refinance on the new appraised value after a short seasoning period (often three to six months), rather than making you wait a year. Confirm the seasoning rule with the lender before you plan your timeline.