What is the Burr strategy?

The Burr strategy is a real estate investment method wherein an investor buys a property, usually a fixer-upper, remodels it, rents it out, and then refinances it, typically within three to six months after the initial purchase. This method relies on refinancing at a lower than market interest rate to ensure that the income from the property exceeds its costs, achieving a positive cash flow. The overarching goal is to recycle capital and continue investing using the funds recovered from refinancing. This strategy, however, requires adapting to changing market conditions, especially fluctuating interest rates 1.

Further details highlight the steps involved as "Buy, Rehab, Rent, Refinance, Repeat," emphasizing continual investment and the strategic movement of capital. This approach is often discussed in the context of creating and maximizing wealth-building opportunities in real estate 2.