BRRRR Calculator
Buy, rehab, rent, refinance, repeat — see how much cash the refinance gives back, how much stays stuck in the deal, and whether the property still cash-flows on the new loan.
To recover all your cash at 75% LTV, the all-in cost would need to be about $182,500.
How the BRRRR math works
All-in cost = purchase price + purchase closing costs + rehab + holding costs until the refinance. Cash back = new loan (ARV × LTV) − refinance closing costs (the new loan also retires any short-term purchase or rehab loan, which this sheet treats as cash you put in). Cash left in the deal = all-in cost − cash back.
When cash left is zero or negative, your cash-on-cash return is technically infinite — you own a rental with none of your money in it. The catch is the bigger loan: check that the post-refinance cash flow and DSCR still work, because many DSCR lenders size the refinance at 1.0–1.25.
Where BRRRR deals go wrong
- Optimistic ARV. Base it on renovated comparable sales within the past six months, not the best sale on the street.
- Rehab overruns. Add a 10–15% contingency to the contractor’s bid.
- Seasoning and rate risk. Rates can move during a six-month rehab. Try the refi rate a point higher.
Once refinanced, it’s a normal rental — run it through the rental property calculator for the long-term view.
Questions investors ask
What is the BRRRR method?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. You buy a property below its potential value, renovate it, rent it out, then refinance based on the higher after-repair value (ARV) to pull most or all of your cash back out, and use it on the next property.
How much cash can I pull out in a BRRRR refinance?
Cash-out refinances on investment properties are commonly capped at 70–75% of the appraised value. The new loan first pays off any purchase or rehab loan and closing costs; whatever is left comes back to you. The calculator shows how much of your original cash stays in the deal.
What is the seasoning period?
Many lenders require you to own the property for 6–12 months before they will lend on the new appraised value rather than your purchase price. Holding costs during that period (loan interest, taxes, insurance, utilities) are part of your all-in cost.
What makes a good BRRRR deal?
A common target is an all-in cost (price + rehab + holding + closing) at or below 75% of ARV, so a 75% LTV refinance returns nearly all your cash, and the property still cash-flows on the new, larger loan.