How Foreign Investors Can Use the BRRRR Method in the U.S.

BRRRR.

It’s not cold outside, it’s a real estate investment strategy that stands for Buy, Rehab, Rent, Refinance, Repeat. For experienced real estate investors, the BRRRR method is a proven way to add value and scale a rental portfolio. As a foreign national though,, the “Refinance” step often turns into a roadblock. Without U.S. credit, income history, or residency, traditional lenders can make it nearly impossible to access the equity you’ve built through renovations.

That’s where Waltz changes the equation by enabling you to refinance based on a property’s rental income, and do it fast enough to recycle capital into the next deal. Learn more about the BRRRR and how you can use this cost-effective strategy to build a U.S. real estate portfolio.

Key takeaways:

• The BRRRR strategy allows foreign investors to purchase distressed properties, add value through forced appreciation, and pull out the capital from equity gained in the process.
  
  
• Many foreign investors can pay cash to start, but refinancing becomes a challenge without access to the right lender and loan options.
  
  
• Waltz enables the refinance step with DSCR loans based on rental income, not personal credit or income.

What’s the BRRRR method and why does it matter for foreign investors?

The BRRRR method is a way to grow a rental portfolio without keeping all your capital tied up in one property. Conceptually, the idea is simple: you buy a property, improve it to increase its value and rental income, rent it out, then refinance to pull equity out and invest in the next property. For foreign nationals, this strategy can be a game-changer. Instead of saving for years between purchases, you can recycle the same funds multiple times to build your portfolio faster. 

Recycling capital is essential for growth

Paying all cash for properties can work, but it slows down your ability to scale. By pulling equity out after a rehab, you can:

• Free up capital for your next purchase.
  
  
• Reduce the opportunity cost of idle equity.
  
  
• Build a portfolio faster than waiting to save up for the next deal.

Read more: Adva is recycling money through BRRRR and scaling with cash-out refinances

Common hurdles foreign investors face

• Refinancing barriers: Traditional lenders often require U.S. tax returns, credit history, or residency.
  
  
• Long seasoning periods: Many banks make you wait 6 to 12 months before refinancing after a purchase.
  
  
• Complex processes: Multiple in-person visits, paper-heavy applications, and unclear communication can slow deals or cause them to fall through.

Without access to refinancing, the BRRRR method can quickly stall. When equity is locked up, investors lose the chance to jump on the best buying opportunities.

Buy

The BRRRR process starts with finding the right property, one that has both upside potential and solid rental demand. For foreign investors, the search should balance acquisition price, rehab feasibility, and expected rental income once improvements are complete.

Consider the following when buying:

• Location: Look for areas with strong rental demand, stable employment, and property values that support your long-term goals.
  
  
• Property condition: Find value-add opportunities. Depending on your skill set, you may opt for a complete gut job, cosmetic rehab, or something that needs moderate repairs.
  
  
• Numbers first - Make sure the projected post-rehab rent supports your financing plan under the Debt-Service-Coverage-Ratio (DSCR) model.
  
  

If you’re investing from abroad, having a U.S.-based real estate agent, contractor, and property manager in your corner are essential. They can help you evaluate properties, negotiate terms, and coordinate inspections without needing to fly in for every step.

Learn more: How to find and analyze rental properties

Rehab

Rehab is where you create equity and unlock the property’s true potential, both in value and in rental income. For BRRRR investors, the goal isn’t just to make the property look better, but to make it worth more in the eyes of appraisers and tenants.

Key rehab tips include:

• Focusing on rent-ready upgrades: Kitchens, bathrooms, flooring, and paint often deliver the best return on investment.
  
  
• Balancing speed and quality: The longer your rehab takes, the longer your capital is tied up.
  
  
• Knowing your after-repair value (ARV):  Every upgrade should support your refinancing strategy by helping you hit your target appraisal value.
  
  

If you’re managing from abroad, a reliable contractor and on-the-ground project manager are non-negotiable. Clear timelines, photo updates, and budget tracking help keep the project on schedule and within scope.

Explore more: The (Not so) Secret to Turning Equity into More Rentals

Rent

Once the rehab is complete, the property needs to generate consistent rental income, both to cover expenses and to position it for refinancing. In the BRRRR model, securing reliable tenants quickly is critical to keeping momentum. Here’s what you need to know:

• Set a competitive rent - Research local comps to balance maximum income with minimal vacancy time.
  
  
• Screen tenants thoroughly - Strong tenants mean steady payments and fewer management issues, which is especially important if you’re abroad.
  
  
• Document everything - Lease agreements, proof of rent received, and a clean rent roll will all be part of the refinancing package.

Having a trusted property manager on the ground makes a difference when living abroad. They can handle marketing, tenant screening, rent collection, and maintenance, so you can focus on your next acquisition.

Refinance

Refinancing is the make-or-break step in the BRRRR method. It’s what turns locked-up equity into capital you can reinvest, but traditional lenders often make it the hardest part of the process.

Waltz changes that. By using foreign investor-friendly loans and a fully digital process, you can refinance based on the property’s income, not personal credit or U.S. residency.

Refinance based on property cash flow

Under the model that Waltz uses, your loan qualification is based upon your DSCR score. DSCR stands for debt-service-coverage-ratio– anything above a 1.0 implies that the property produces cash flow where your rental income exceeds your mortgage payment. This approach eliminates the need for U.S. income verification, credit history, or tax returns, making it ideal for foreign investors.

What to prepare

To make your refinance go smoothly these are some of the basic requests that Waltz will require in addition to more information later:

• Proof of rental income: We’ll need to verify consistent rental payments to ensure the property generates enough cash flow to cover the loan. This typically includes bank statements or rent rolls showing timely tenant payments.
  
  
• The property is in rent-ready condition: The house must be tenant-occupied or ready to be rented immediately, with all repairs and upgrades completed to meet local standards and appeal to renters. It can’t be under construction!
  
  
• Appraise at a certain value: The property’s appraised value must meet or exceed the target after-repair value (ARV) to support the desired loan amount. This confirms that your renovations have increased the property’s market worth.
• Documentation checklist: Be ready with ID, bank statements, lease agreements, and LLC/EIN documentation.

How a cash-out refinance works

A cash-out refinance lets you unlock the equity built up in your rental property and turn it into cash you can use for your next investment. With Waltz, you can borrow up to 70% of your property’s after-repair value (ARV), meaning if your rehabbed property appraises at $500,000, you could qualify for a loan of up to $350,000. This frees up capital while keeping significant equity in the property. Let’s look at an example:

Imagine you bought a property all-cash for $300,000 and invested $50,000 in renovations. After rehab, the property appraised at $450,000, with reliable tenants paying $3,000 monthly rent. Based on a 70% LTV, Waltz could refinance you up to $315,000, providing cash back while your rental income covers the new mortgage payments. You can then use that cash to fund your next property purchase or renovate another asset.

Learn more: How to cash-out refinance

Repeat

The final step of the BRRRR method is what truly builds momentum. It’s where you turn the equity you’ve built into fuel for your next investment. By leveraging this strategy effectively, you can scale your portfolio using your original capital. Whether you’re acquiring your second property or your twentieth, Waltz takes care of the financing and structure, so you can focus on growing your investments.

Ready to put your capital to work again? Get started with Waltz

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