BRRRR Calculator

Free BRRRR calculator. Enter purchase, rehab, ARV, refinance terms and rent to see the cash left in the deal, monthly cash flow and return on the cash that stays in.

Cash left in deal = Purchase + Rehab + Costs − Refinance loan (ARV × LTV)

Cash left in the deal
—
Total cash in (purchase, rehab, costs)—
Refinance loan—
New loan payment—
Monthly cash flow after refinance—
Cash-on-cash on cash left in—

Planning estimate. Lenders may cap the loan at cost or require seasoning before a cash-out refinance. Confirm with your lender and an appraisal.

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How the BRRRR math works

BRRRR stands for buy, rehab, rent, refinance, repeat. You buy a property below its potential value, renovate it, rent it out, then refinance at the higher after-repair value (ARV). The question that decides the deal is how much of your cash comes back out at the refinance.

Cash left in the deal is everything you spent (purchase, rehab, closing and holding costs) minus the new loan. The new loan is the ARV times the loan-to-value (LTV) the lender allows.

Example: you buy for $120,000, spend $35,000 on rehab and $8,000 on closing and holding costs, for $163,000 in total. The house appraises at $200,000 and a lender refinances at 75% LTV, a $150,000 loan. $13,000 of your cash stays in the deal. At 7.5% over 30 years the new payment is about $1,049, so $1,800 rent minus $650 of operating costs leaves about $101 a month, roughly 9.3% a year on the $13,000 still invested.

What makes a BRRRR work

The spread between all-in cost and ARV does most of the work. When total cash in is at or below the refinance loan, the deal returns all of your money. The refinanced property also has to carry its new, larger payment, so check cash flow after the refinance and not only the cash you pull out.

Where BRRRR deals break

The appraisal comes in under your ARV. Rehab runs over budget or over schedule. The lender requires a seasoning period, caps the loan at what you paid, or offers a lower LTV than you planned. Rates rise between purchase and refinance. Run the calculator with a lower ARV and a higher rate to see how much margin you have. Choosing a market for BRRRR covers the market side.

BRRRR FAQ

What does BRRRR stand for?

Buy, rehab, rent, refinance, repeat.

What loan-to-value do lenders allow on a BRRRR refinance?

Cash-out refinances on investment property commonly top out around 70% to 75% of appraised value. Some lenders cap the loan at your cost or require a seasoning period before using the new value.

Is a BRRRR with cash left in the deal a bad deal?

Not necessarily. Leaving some cash in can still produce a strong return on that cash. Compare the return on cash left in with what the same money could earn elsewhere.

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