BRRRR Calculator
Buy, Rehab, Rent, Refinance, Repeat. See exactly how much cash you'll recover at refi and what's left in the deal.
How the BRRRR strategy works
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. The goal is to use one chunk of cash to acquire and renovate a distressed property, then pull most or all of that cash back out via a cash-out refinance once the property is stabilized and appraises at its higher post-rehab value. If you do it well, you end up owning a cash-flowing rental with little or none of your original capital trapped in it — letting you "repeat" the process with the same money.
The formula at refinance
Cash recovered = Refi loan − Refi closing costs
Cash left in deal = (Purchase + Rehab + Closing + Carrying) − Cash recovered
You buy a tired single-family for $120,000 with $3,500 in closing costs, all cash. You spend $35,000 on rehab over 4 months, plus $2,400 in carrying costs (taxes, insurance, utilities during the rehab).
The property appraises at $200,000 (ARV) and you refinance at 75% LTV with $4,500 in refi closing costs.
The property rents for $1,750/month. After mortgage ($998), taxes, insurance, vacancy reserve, and 8% management, monthly cash flow is about $135.
You pulled back 90% of your capital and still earn 10.5% on the residual — plus you now own a $200K asset paying down principal every month.
What makes a great BRRRR vs a bad one
The single biggest variable is the ARV. If you overestimate it by 10%, you might still pull most of your cash back, but you've borrowed at an inflated valuation and your equity cushion is thin. If you underestimate rehab by 20%, you'll bleed margin from the deal — and rehab almost always runs over.
The general rules investors use:
- Buy at 70–75% of ARV minus rehab. This is the same logic as the 70% rule for flips, with a small buffer for refi closing costs.
- Pad rehab by 10–20%. Always.
- Confirm refi LTV before you buy. Lenders vary. 75% is common; some go 70%, a few will do 80% for owner-occupied conversion.
- Verify rent comps, not Zillow estimates. Drive the area, check actual listings.
Frequently asked questions
How long until I can refinance?
Most conventional lenders require a 6-month "seasoning" period before they'll lend on the new ARV. Some portfolio and DSCR lenders will refi sooner — sometimes after 90 days — but at slightly worse terms. Check seasoning requirements before you buy.
What's a good cash-on-cash return for a BRRRR?
Most experienced investors target 10%+ cash-on-cash on the residual cash left in the deal. An "infinite return" (zero cash left) is the dream but rare in this rate environment. 8% is acceptable; below 5% means you're better off buying turnkey or putting the money elsewhere.
What if I can't pull all my cash back?
That's normal — most BRRRRs in 2024-2025 leave 10–30% of capital in the deal because of higher interest rates and more conservative appraisals. As long as your cash-on-cash on the residual is strong, it's still a good deal.
Should I use hard money or all cash to buy?
Hard money lets you do more deals but eats into your margins through points and interest. All-cash maximizes margin but ties up capital. The right choice depends on how many deals you want to run simultaneously and your deal flow.
How does the refi loan affect my cash flow?
The new mortgage payment is the biggest fixed expense on the property. A 75% LTV refi at 7.25% on a $200K property creates a ~$1,023 monthly payment. Make sure rent comfortably covers that plus taxes, insurance, vacancy, maintenance, and management — typically rent needs to be 1.1–1.3% of ARV monthly for the math to work.
These calculations are estimates for educational purposes. Actual refinance LTV, appraised value, rates, and rents will vary. Always run your specific numbers with a lender and verify rent comparables before committing capital.