The BRRR strategy, Buy, Rehab, Rent, Refinance, Repeat, is one of the most powerful ways to grow a real estate portfolio, but most beginners only understand the surface level. You start by buying a property below market value, usually something distressed or undervalued, and then you renovate it to increase its worth. This added value is what creates that instant equity investors love to talk about. Once the property is renovated, you rent it out to generate steady, predictable cash flow. After it’s fully stabilized, most investors move to the refinance step to pull cash out. But here’s the part they often overlook: when you refinance to access that equity, you’re borrowing money, which means you’re taking on interest costs. Many investors celebrate the cash they pulled out but forget to calculate how much interest they’ll pay on that borrowed equity over time. That’s why smart investors don’t just rely on appreciation, they also build equity by strategically paying down the loan. Every extra dollar you apply to principal increases your equity without adding interest, and it cuts future interest costs. So yes, BRRR is a powerful method, but it becomes truly profitable when you understand how interest works, how amortization steals your money in the early years, and how controlling the principal, not the interest rate, is what really grows your wealth. Get a FREE Savings & Earnings Report! https://bit.ly/3QqmPx5 Watch & Subscribe to the PILL Method Youtube Channel! https://bit.ly/4aRITIy #Dondaniel #PILLmethod #InterestCancellation #PayOffYourMortgage3to5years #PayOffStudentLoansFaster #ABetterWayToEliminateDebt #OptimizedBudgeting #vanntastic #christievan #MortgageEducation