how long to complete the BRRRR process?

[Marc Shin]

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?

[Matthew Crivelli]

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.

[River Sava]

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-...

[Jake Baker]

@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.

[Alex Bekeza]

@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.

[Pat Lulewicz]

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.