BRRRR Calculator

Run a complete BRRRR (Buy, Rehab, Rent, Refinance, Repeat) deal analysis to see how much cash you recover after refinancing and what your ongoing monthly cash flow looks like. This calculator helps you evaluate whether a BRRRR strategy can recycle your capital effectively.

The BRRRR Calculator walks through each stage of the Buy, Rehab, Rent, Refinance, Repeat strategy to determine how much capital you recover and what your ongoing returns look like. First, it calculates your total initial investment. This is the purchase price plus the rehab cost. In a typical BRRRR deal, you buy a distressed property below market value, then invest in renovations to bring it up to its full after-repair value (ARV). Next, the calculator determines how much you can pull out during the refinance stage. It multiplies your after-repair value by the refinance loan-to-value (LTV) ratio. For example, if your ARV is $250,000 and you refinance at 75% LTV, your new loan amount is $187,500. The cash you recover equals this new loan amount minus any existing debt on the property. The key metric is your cash left in the deal: your total initial investment minus the refinance proceeds. A perfect BRRRR deal leaves zero or even negative cash in the deal, meaning you recovered all your capital and can redeploy it into the next property. In practice, most deals leave some cash in, and the calculator helps you see exactly how much. Finally, the calculator computes your ongoing monthly cash flow after the refinance. It takes your monthly rent, subtracts estimated expenses, and subtracts the new mortgage payment on the refinanced loan. The mortgage payment is calculated using standard amortization with your refinance rate and loan term. This gives you a complete picture: how much capital you recover upfront and how much passive income the property generates going forward. The combination of capital recycling and ongoing cash flow is what makes BRRRR such a powerful wealth-building strategy.

The success of a BRRRR deal hinges on the spread between your all-in cost (purchase plus rehab) and the after-repair value. A common guideline is the 70% rule: your purchase price plus rehab should not exceed 70% of the ARV. This gives you enough margin to refinance out most or all of your capital while still maintaining positive cash flow after the refinance.

Rehab budget accuracy is critical in BRRRR deals. Underestimating renovation costs is the most common mistake that turns a great deal on paper into a mediocre one in practice. Always get contractor bids before committing to a purchase, add a 10-15% contingency buffer, and track every dollar during the renovation. Scope creep and unexpected issues like hidden water damage or electrical problems can quickly erode your margins.

The refinance stage introduces interest rate risk. If rates rise between your purchase and refinance (typically 3-6 months later), your new mortgage payment will be higher than projected, reducing your ongoing cash flow. Run scenarios with rates 0.5-1% higher than current levels to ensure the deal still works in a rising rate environment.

Not every property is suitable for BRRRR. The ideal candidate is significantly undervalued due to cosmetic or moderate issues that can be fixed cost-effectively, located in an area with strong rental demand, and in a market where ARV appraisals are reliable. Avoid properties requiring structural work or in areas with thin comparable sales data, as appraisals may come in lower than expected.

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is an investment strategy where you purchase a distressed property, renovate it to increase value, rent it out, refinance based on the new higher value to recover your invested capital, and then repeat the process with the recovered funds on another property.

Ideally, you recover all or nearly all of your invested capital. In a perfect BRRRR, the refinance proceeds cover your entire purchase and rehab cost, leaving zero cash in the deal. Realistically, many investors leave 10-20% of their initial investment in the property, which is still an excellent outcome compared to a traditional buy-and-hold acquisition.

Most conventional lenders offer 70-75% LTV on investment property refinances. Some portfolio lenders or credit unions may go up to 80% LTV. The LTV is applied to the appraised value after rehab, not your purchase price. A higher LTV means you recover more capital but have a larger mortgage payment and lower ongoing cash flow.

Most lenders require a seasoning period of 3-6 months after purchase before they will refinance based on the new appraised value. Some portfolio lenders have no seasoning requirement. Plan your rehab timeline to complete renovations and get a tenant placed within this window so you can refinance as soon as the seasoning period expires.

This calculator provides estimates for informational purposes only. Results are based on the inputs you provide and standard financial formulas. Actual amounts may vary based on your specific situation, location, lender requirements, and market conditions. This is not financial, tax, or legal advice. Always consult with qualified professionals before making real estate or financial decisions.

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Cash Left in Deal

$2,500.00

Monthly Cash Flow$152.56
Annual Cash Flow$1,830.69
Cash-on-Cash Return0.73%
Equity$62,500.00

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