BRRRR Calculator

Analyze a Buy, Rehab, Rent, Refinance, Repeat deal. Calculate cash left in the deal after refinance, monthly cash flow, and cash-on-cash return.

BRRRR Details

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Rental & Refinance

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Tax, insurance, maintenance, management

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Typically 75% for investment

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yrs

Ready to Analyze

Enter the BRRRR deal details to see how much cash you can recover and your ongoing returns.

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Pro Tip

The key to a successful BRRRR is buying significantly below market value. Aim to purchase at 60-70% of ARV minus rehab costs so the refinance covers your entire investment.

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The BRRRR Strategy Explained

The BRRRR method is a powerful real estate investment strategy that allows you to recycle your investment capital across multiple properties. By purchasing undervalued properties, forcing appreciation through renovation, and refinancing based on the new value, you can theoretically build a portfolio using the same initial capital repeatedly.

The strategy works because of the gap between your purchase price (plus rehab) and the after-repair value. When you refinance at 75% of ARV, if the ARV is significantly higher than your total investment, the refinance proceeds can return all or most of your cash while leaving you with a cash-flowing rental property.

Success depends on accurate ARV estimation, controlled rehab costs, and proper property management. Overestimating ARV or underestimating rehab costs can leave you with more cash in the deal than planned, slowing your ability to repeat the process.

The cash-on-cash return on a well-executed BRRRR can be extraordinary. If you recover all your cash, your return is effectively infinite since you earn rental income on zero invested capital. Even partial cash recovery often yields returns far exceeding traditional rental property investments.

BRRRR Formulas

Cash Left in Deal

Cash Left = Total Invested - (ARV × Refinance LTV)

Where:

Total Invested = Purchase price + rehab costs

ARV = After-repair value (appraised value post-renovation)

Refinance LTV = Loan-to-value ratio for cash-out refi (typically 75%)

Example

Buy $150K, Rehab $40K, ARV $250K, 75% LTV refinance:

  • • Total invested: $150,000 + $40,000 = $190,000
  • • Refi loan amount: $250,000 x 75% = $187,500
  • • Cash left in deal: $190,000 - $187,500 = $2,500
  • • Monthly cash flow: $2,000 rent - $600 expenses - $1,247 mortgage = $153
  • • Cash-on-Cash: ($153 x 12) / $2,500 = 73.4% (almost infinite!)

Frequently Asked Questions

What does BRRRR stand for?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is a real estate investment strategy where you purchase a distressed property below market value, renovate it to increase its value, rent it out, refinance to pull out your initial investment, and then repeat the process with the recovered capital.
What is the ideal outcome of a BRRRR deal?
The ideal BRRRR outcome is recovering 100% of your invested cash through the refinance while still maintaining positive monthly cash flow. This effectively gives you an infinite cash-on-cash return because you have no money left in the deal but still earn income from it.
What LTV can I expect on a cash-out refinance?
Most lenders offer 70-80% LTV on cash-out refinances for investment properties. Some portfolio lenders may go up to 80%, but 75% is the most common. The LTV is based on the after-repair appraised value, which is why forcing appreciation through rehab is central to the strategy.
How long do I need to wait before refinancing?
Most conventional lenders require a 6-month seasoning period before allowing a cash-out refinance based on the new appraised value. Some portfolio lenders have shorter or no seasoning requirements. During this period, the property should be rented and generating income.
What if I cannot get all my cash out?
Leaving some cash in the deal is common, especially in your first few BRRRR deals. The key is to minimize the cash left in while maintaining positive cash flow. Even if you recover 80-90% of your capital, the cash-on-cash return on the remaining amount can be exceptional.