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BRRRR Strategy
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Buy · Rehab · Rent · Refinance · Repeat. Calculate capital recycled, total ROI, and how many deals it takes to build a self-funding portfolio — in Indian market conditions.
BRRRR strategy — frequently asked questions
What is the BRRRR strategy and does it work in India? +
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy an undervalued or distressed property, renovate it to increase its value, rent it out, then refinance against the higher appraised value to pull out your invested capital — which you then use for the next deal. The strategy works in India but requires finding properties below market value (distressed sales, inheritance disputes, auctions), keeping renovation costs tight, and accessing a lender willing to refinance against the improved value. The key metric is how much capital you can recycle — ideally 80–100% of your original investment.
What LTV (loan-to-value) can I expect for a refinance in India? +
Indian banks typically offer 70–80% LTV on residential property refinancing. RBI mandates a maximum LTV of 90% for loans up to ₹30L, 80% for loans between ₹30L–₹75L, and 75% for loans above ₹75L. In practice, many banks apply conservative valuations (lower than market price), so 65–75% of the bank's assessed value is a realistic expectation. Self-employed applicants often face lower LTVs. The higher the property's assessed value after renovation, the more capital you can pull out.
How do I find undervalued properties for BRRRR in India? +
BRRRR requires buying below market value — typically 15–25% below ARV before renovation. In India, look for: NPA (Non-Performing Asset) auctions from banks (SARFAESI auctions on e-auction portals); distressed sales from NRIs or inheritance disputes; old builder inventory with high carrying costs; properties in upcoming infrastructure corridors priced before the appreciation; and direct seller deals bypassing brokers. Tier-2 cities and developing micro-markets within Tier-1 cities (Hyderabad's peripheral areas, Pune's outskirts) offer better BRRRR opportunities than central Mumbai or Delhi.
What is "infinite returns" in the BRRRR strategy? +
Infinite returns occur when you recover 100% or more of your original cash investment through the refinance — meaning you have zero capital left in the deal but still own the property and receive rental income. Since your denominator (invested capital) is zero, your return is technically infinite. For example: you invest ₹20L total, refinance pulls out ₹22L — you've recovered all your capital plus ₹2L extra, yet you still own the property and earn rental income. This is the BRRRR ideal. In Indian markets, achieving this requires: buying at 70–75% of ARV, keeping renovation ROI high, and using maximum LTV refinancing.