BRRRR loan financing.

BRRRR is buy, rehab, rent, refinance, repeat, and it runs on two loans rather than one: a short-term facility that buys and renovates the property, then a long-term refinance that pays it off once the property is rented. The bridge loan here is the same instrument as the fix and flip product, sized against purchase and rehab together.

The part that goes wrong is not usually the bridge, it is the handoff. A refinance lender qualifies the property on its new appraised value and, for a rental, on whether the rent covers the payment. If the bridge loan's numbers and the refinance lender's requirements were never checked against each other, the exit that looked fine on a spreadsheet turns into cash trapped in the deal.

Here both loans come from the same lender, so they are underwritten together and the refinance is lined up before the bridge closes. You know what value the finished property needs to appraise at, the seasoning period before the refinance lends against that value, and what rent it needs to carry the new payment, all before the bridge closes.

The same rule applies to a flip. If the plan is to sell, the deal is still checked against a refinance exit, so a house that does not sell becomes a rental rather than a forced sale. Most lenders do not do this: they are paid at closing, and what happens six months later is not their problem.

None of that changes what the bridge loan itself needs to close: a purchase contract, a real scope of work, and an exit. It changes how that file gets built, so the refinance is a formality rather than a negotiation that starts after the rehab is already finished.