BRRRR Calculator
Buy, rehab, rent, refinance, repeat
- Monthly cash flowafter the refinance
- ✓ $103
- Cash-on-cash returncash flow ÷ cash left in
- 8.1%
- DSCRrent ÷ PITIA
- ✓ 1.37
- Equity after refinanceARV − new loan
- $62,500
- Your cash inbefore the refinance
- $197,000
- Cash back at refinance
- $181,875
Free to check. Based on the rent, not your tax returns.
Estimates, not a loan offer. Lenders set their own appraisal, seasoning and loan-to-value rules. We may earn a commission when you click. It does not change your estimate. How we calculate · How we make money
| Amount | |
|---|---|
| Purchase price | $150,000 |
| Purchase closing costs | $4,000 |
| Rehab | $40,000 |
| Holding costs (6 mo) | $3,000 |
| Short-term loan interest + points | $0 |
| All-in cost | $197,000 |
| Refinance loan | $187,500 |
| Refinance closing costs | −$5,625 |
| Short-term loan payoff | $0 |
| Cash back to you | $181,875 |
| Monthly principal + interest | $1,311 |
| Monthly NOI | $1,414 |
The refinance makes or breaks a BRRRR
DSCR lenders qualify the refinance on the rent, not your tax returns. Check what loan-to-value and rate you can get on this deal.
Free to check. Based on the rent, not your tax returns.
How the BRRRR method works
BRRRR stands for buy, rehab, rent, refinance, repeat. You buy a property below its value, renovate it, rent it out, then refinance based on the higher after-repair value (ARV). The refinance pays off any short-term loan and returns some or all of your cash, which you use for the next deal.
The number that matters most is the cash left in the deal after the refinance. In the example, a $150,000 purchase with $40,000 of rehab and six months of holding costs takes $197,000 of cash. A 75% refinance on a $250,000 ARV is a $187,500 loan, which returns about $181,900 after closing costs, leaving about $15,100 in the deal.
What a good BRRRR looks like
- Most of your cash comes back. Investors often aim to recover 80% to 100% or more at refinance.
- It still cash flows after the refinance. A bigger loan means a bigger payment. Check that cash flow stays positive and the DSCR clears your lender's minimum, often 1.0 to 1.25.
- The ARV is supported. The refinance depends on the appraisal. Use recent comparable sales, not hopes.
Common BRRRR risks
- The appraisal comes in low and less cash comes back.
- Rehab runs over budget or over schedule, adding holding and loan costs.
- Lenders require seasoning, a minimum time you've owned the property before a cash-out refinance.
- Rates rise between purchase and refinance.
Try a lower ARV and a higher rate to see how much room the deal has. When the cash left in is zero or less, the calculator shows cash-on-cash return as infinite, since none of your money is still in the deal.
Frequently asked questions
What is the BRRRR method?
A real estate investing strategy: buy a property below value, rehab it, rent it out, refinance based on the higher after-repair value to pull your cash back out, and repeat with the next property.
How do you calculate a BRRRR deal?
Add up your cash in (purchase, closing, rehab, holding and short-term loan costs, minus any short-term loan), then subtract the cash back at refinance (the new loan minus closing costs and the short-term loan payoff). What's left is your cash in the deal, and cash flow after the new mortgage is your return on it.
What loan-to-value do BRRRR refinances use?
Investment property cash-out refinances, including DSCR loans, often go up to 70% to 75% of the appraised value. Many lenders also require a seasoning period of ownership before they'll use the new value.
What if the appraisal comes in low?
The refinance loan is smaller, so less cash comes back and more stays in the deal. Lower the ARV above to see how much margin you have.
Free rental property spreadsheet
The same formulas in Excel or Google Sheets, plus a 10-year projection with equity, total profit and IRR. No email needed.