Capital Kings LLC

How does BRRRR financing work in Texas?

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat: buy and fix a house with a short-term fix and flip loan, rent it, then refinance into a 30-year DSCR loan to pull your cash back out for the next deal.

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Reviewed by Micah Foster, Founder & CEO · October 2026

Key takeaways · Rates as of October 2026

Buy and rehab on a fix and flip loan: 0% or 5% down in a Texas metro area (MSA), or 12.5% down, $7,358 to $29,635 to close on this deal.
Rent it before you refinance. The rent has to cover the new 30-year payment.
Rate and term keeps the lowest rate and the most cash flow. Cash-out pays your cash back for the next deal.
At 720+ credit a cash-out can reach 80% of the appraised value. Under 660 there is no DSCR refinance.
Rate and term can happen any time. Cash-out on the full appraisal opens after 180 days.

What is BRRRR?

Five steps that recycle the same cash into house after house. The first two run on a short-term fix and flip loan, the last two on a 30-year DSCR loan that qualifies on the rent.

BRRRR in five steps

1BuyFix and flip loanMonth 0$29,635to close on 12.5% down
2RehabRehab drawsMonths 1 to 4$45,000rehab, released in draws
3RentTenant and leaseMonths 5 to 6$2,400a month of rent
4Refinance30-year DSCR loanAfter day 180$44,566back to you on the cash-out
5RepeatCash for the next houseMonth 7 on$6,339more than you put in

$150,000 house, $45,000 rehab, $290,000 after repair value, $2,400 rent, 720 credit. Bought on 12.5% down, refinanced after 180 days. Typical timing; your rehab sets the pace.

Capital Kings · capitalkings.co · rates as of October 2026

How does each step work?

Each step has its own money: a fix and flip loan to buy, draws for the rehab, a lease for the rent and a DSCR loan to refinance.

1
Buy.
Use a fix and flip loan: 0% down, 5% down or 12.5% down, depending on how much cash you want to put in. 0% and 5% down are for properties in a Texas metro area (MSA).
2
Rehab.
Finish the work. The lender releases the rehab money in draws as each phase is inspected, and you pay interest only on what has been drawn.
3
Rent.
Put a tenant in before you refinance. A signed lease is the strongest proof of rent, and the rent has to cover the new payment.
4
Refinance.
Pay off the flip loan with a 30-year DSCR loan, either rate and term or cash-out.
5
Repeat.
Use the cash from the refinance on the next house.

Rate and term or cash-out?

Rate and term if you want the lowest payment and the most cash flow; cash-out if you want your cash back for the next deal. On this deal that is $515 a month of cash flow against $44,566 back.

Rate and term or cash-out, side by side

Rate and term

New loan$186,420

Share of value64.3%

Rate7.32%

Payment$1,885

Cash flow a month$515

Cash back$0

Best forCash flow

Cash-out

New loan$232,000

Share of value80%

Rate8.38%

Payment$2,368

Cash flow a month$32

Cash back$44,566

Best forThe next deal

$150,000 house, $45,000 rehab, $290,000 after repair value, $2,400 rent, 720 credit. 30-year fixed, refinanced after 180 days. Payment includes taxes and insurance; cash flow is before repairs and vacancy.

Capital Kings · capitalkings.co · rates as of October 2026

Rate and term pays off the flip loan and the closing costs and nothing more. Cash-out borrows more at a slightly higher rate, and the difference comes to you. The rent has to cover the payment either way.

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How much can I refinance?

Up to 80% of the appraised value on rate and term at 700+ credit, and up to 80% on a cash-out at 720+. Lower scores get a lower share.

How much you can refinance at your credit score

Credit score	Rate and term	Cash-out
720 and up	80%	80%
700 to 719	80%	75%
680 to 699	75%	70%
660 to 679	65%	60%
Under 660	Not available	Not available

The most the new 30-year DSCR loan can be, as a share of the appraised value. Under 660 credit there is no DSCR refinance.

Capital Kings · capitalkings.co · rates as of October 2026

The rent also has to cover the full monthly payment (principal, interest, taxes and insurance) at a 1.00 DSCR or better. If it doesn’t, the loan is sized down to what the rent covers.

How long before I can refinance?

Rate and term can happen any time. A cash-out opens after 90 days, and the full appraised value counts after 180 days.

What changes as you own it longer

Days 1 to 90
Rate and term
Yes. Pays off the flip loan, no cash back
Cash-out
Not yet
Days 91 to 180
Rate and term
Yes
Cash-out
Sized on what you paid plus the rehab: $156,000 here, less than the $176,250 payoff, so it doesn’t work yet
Day 181 on
Rate and term
Yes
Cash-out
Sized on the appraised value: $232,000 here, $44,566 back to you

$150,000 house, $45,000 rehab, $290,000 after repair value, $2,400 rent, 720 credit. What you paid plus the rehab: $195,000.

Capital Kings · capitalkings.co · rates as of October 2026

0% down is a 6-month term, so on 0% down plan a rate and term refinance (or an extension) before it ends.

What can go wrong?

The two numbers that move your cash back are the appraisal and the rent. If the house appraises 10% low at $261,000, the cash-out pays back $22,200, and $16,027 of your cash stays in the deal. If it rents for $2,000, the loan is sized down to what the rent covers and $10,363 comes back.

Cash back if the numbers come in lower

If	Cash back	Your cash
As planned	$44,566	$6,339 ahead
Appraisal 10% low	$22,200	$16,027 still in
Rent $2,000	$10,363	$27,864 still in

$150,000 house, $45,000 rehab, $290,000 after repair value, $2,400 rent, 720 credit. Cash-out after 180 days; you put in $38,227. A 10% low appraisal is $261,000. Every case still pays off the flip loan.

Capital Kings · capitalkings.co · rates as of October 2026

Either way the refinance still pays off the flip loan, so the house is a rental with your cash in it, not a loss. Check the rent and pull your own sale comps before you buy, not after the rehab.

What does a real BRRRR deal look like?

On a $150,000 Texas house with a $45,000 rehab and a $290,000 after repair value, you put in about $38,227, and a cash-out refinance after 180 days pays back $44,566: $6,339 more than you put in.

Where your cash goes, and comes back

Cash you put in$38,227

Cash to close on 12.5% down$29,635

Six months of interest on the flip loan, fully drawn$8,592

Cash back out on the cash-out refinance$44,566

Pays back the cash you put in$38,227

Back on top of what you put in$6,339

$150,000 house, $45,000 rehab, $290,000 after repair value, $2,400 rent, 720 credit. Cash-out refinance after 180 days.

Capital Kings · capitalkings.co · rates as of October 2026

Step 1, the buy: three ways in

Program	Rate	Term	Loan	Cash to close	Proof of funds
0% down	11.50%	6 months	$203,000	$7,358	$37,808
5% down	11.74%	12 months	$187,500	$20,443	$44,949
12.5% down	9.75%	12 months	$176,250	$29,635	$51,727

$150,000 purchase, $45,000 rehab, $290,000 after repair value, 720 credit, first deal, rehab funded in draws. Proof of funds is the cash you show in your bank statements before closing; only the cash to close is spent. 0% and 5% down are for properties in a Texas metro area (MSA). Rates as of October 2026.

A $150,000 purchase, a $45,000 rehab and a $290,000 after repair value in Texas, renting for $2,400, 720 credit. Bought with 12.5% down, refinanced after 180 days. The real term sheets:

Cash to close$0

Proof of funds to show$11,310

Every fee, and who gets paid

Lender fees, underwriting and legalLender$2,295
Broker feeBroker$2,000
Closing / titleTitle co$1,864
Property insuranceInsurer$1,450
Escrow setup, 3 months of taxesLender$1,450
Prepaid interestLender$561
Appraisal feeAppraiser$550

Pays off the flip loan and rolls the closing costs into the new loan. The gold broker line is the only money Capital Kings earns.

A sample sheet for a made-up borrower, built the same way yours is. Yours takes about five minutes and doesn’t pull your credit.

Price my deal →Run your refinance Run the purchase

What else do people ask?

How does BRRRR financing work in Texas?

Buy and rehab with a fix and flip loan, rent the house, then refinance into a 30-year DSCR loan that pays off the flip loan. On a $150,000 house with a $45,000 rehab and a $290,000 after repair value, a cash-out refinance after 180 days puts $44,566 back in your pocket. Rates as of October 2026.

What is the difference between a rate and term and a cash-out refinance?

Rate and term pays off the flip loan and the closing costs and nothing more, at the lower rate, so it keeps the most cash flow ($515 a month here). Cash-out borrows up to 80% of the value at 720+ credit at a slightly higher rate and pays you the difference ($44,566 here, with $32 a month of cash flow).

How long do I have to wait to refinance a BRRRR?

For rate and term, no wait. For cash-out, more than 90 days of ownership, and until 180 days the loan is sized on what you paid plus the rehab. After 180 days the appraisal counts.

How much can I refinance at my credit score?

Rate and term: up to 80% of the appraised value at 700+ and 75% at 680 to 699. Cash-out: up to 80% at 720+. The credit chart on this page has every band. Under 660 there is no DSCR refinance.

How much cash do I need to start a BRRRR in Texas?

On this deal, $7,358 to close on 0% down up to $29,635 on 12.5% down, and the lender wants to see $37,808 to $51,727 in your bank statements (only the cash to close is spent). 0% and 5% down are for a Texas metro area (MSA). A cash-out refinance after 180 days pays back $44,566.

What if the appraisal comes in low?

You get less cash back. On this deal a 10% low appraisal ($261,000) pays back $22,200 instead of $44,566, and $16,027 stays in the deal. The refinance still pays off the flip loan.

What if the rent doesn’t cover the payment?

Then the refinance loan is sized down to what the rent covers, and less cash comes back: at $2,000 rent instead of $2,400, the cash-out pays back $10,363. Check the rent before you buy.

Do I need rental experience for the DSCR refinance?

No. A DSCR loan qualifies on the property’s rent, not your experience or tax returns.

Do you pay a referral fee if I send you an investor?

Yes. We pay $500 to anyone who refers a real estate investor, realtors, wholesalers, contractors, other investors and lenders included, every time that investor closes a loan with us, for life. It comes out of our broker fee, so it never changes the investor’s terms. The details are on our referral program page.

Is Capital Kings the lender?

No. Capital Kings LLC is a broker, not a lender. We arrange both the flip loan and the refinance across 400+ lenders, and our broker fee is one labeled line on each term sheet.

Which questions have worked examples?

Founder & CEO

Micah Foster

Micah brokers fix and flip, DSCR and new construction loans for real estate investors across 38 states. He founded Capital Kings LLC to give investors a broker who compares the market on their behalf instead of pitching one lender’s product, and every term sheet is itemized down to the last fee.

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