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Step 1 – Buying Below Market Value
BRRR only works if:
- The purchase price leaves renovation room
- After-repair value supports refinancing
- Location supports rental demand
Step 2 – Strategic Renovations Only
Smart renovations focus on:
- Kitchens
- Bathrooms
- Flooring
- Lighting
- Exterior curb appeal
Over-renovating kills returns.
Step 3 – Refinancing & Recycling Capital
Once rented:
- Appraised value increases
- Financing improves
- Equity is released
- Capital is reused
This is how investors scale with less cash out-of-pocket.

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