BRRRR Calculator

About the BRRRR Calculator

The BRRRR strategy — Buy, Rehab, Rent, Refinance, Repeat — is one of the most powerful wealth-building methods in real estate. The goal is to purchase a distressed property below market value, renovate it to increase value, rent it out for cash flow, refinance to pull out most or all of your invested capital, then repeat the process with the recycled funds.

The key metric is how much cash remains in the deal after refinancing. In an ideal BRRRR, you refinance at 75–80% of the after-repair value (ARV), recovering all of your purchase and rehab costs, effectively owning a cash-flowing rental property with zero (or near-zero) money left in the deal — approaching infinite return on investment.

This calculator models every stage of the BRRRR process: acquisition cost, rehab budget, post-rehab rental income, refinance at a chosen LTV, and the resulting cash left in the deal, monthly cash flow, and return metrics.

When This Page Helps

BRRRR requires precise numbers at every stage. Overpaying for the property, underestimating rehab costs, overestimating ARV, or not achieving target rents can turn an "infinite return" deal into a cash trap. This calculator runs the full BRRRR analysis so you can underwrite deals with confidence before you commit.

How to Use the Inputs

1. Enter the purchase price and estimated rehab/renovation budget.
2. Enter the after-repair value (ARV) based on comparable sales.
3. Enter the refinance LTV (lender typically allows 70–80% of ARV).
4. Enter the refinance interest rate and loan term.
5. Enter the expected monthly rent after rehab.
6. Enter monthly operating expenses (taxes, insurance, maintenance, management).
7. View cash left in deal, monthly cash flow, and BRRRR return metrics.

Example Calculation

Tips & Best Practices

• The 75% rule: Your all-in cost should be ≤75% of ARV to ensure a full capital recovery at refinance.
• Get 3+ contractor bids before estimating rehab costs — always add 10–20% contingency.
• Don't inflate ARV — use conservative comparable sales and get an independent appraisal.
• Factor in holding costs (loan payments, utilities, insurance) during the 3–6 month rehab period.
• Most lenders require 6‒12 months of seasoning before a cash-out refinance on investment properties.
• The best BRRRR deals recover 100%+ of invested capital, achieving infinite ROI on retained equity.

The Five Stages of BRRRR

Buy: Find a property 20–40% below ARV. Rehab: Renovate to market standards (not over-improve). Rent: Screen tenants carefully and place at market rent. Refinance: Cash-out refinance at 75–80% ARV after 6–12 months seasoning. Repeat: Deploy returned capital into the next deal. Each stage requires discipline and accurate numbers.

Common BRRRR Mistakes

The most common BRRRR failure is overpaying for the property. If your purchase price is too high, no amount of rehab will create enough equity for a clean refinance. Other pitfalls include underestimating rehab costs (always pad 15–20%), overestimating ARV (use conservative comps), underestimating holding costs during rehab, and not accounting for seasoning requirements.

Scaling with BRRRR

The power of BRRRR is compounding: if you recover 100% of your capital on each deal, you can theoretically buy unlimited properties with the same pool of money. In practice, most investors retain some capital per deal. With $100,000 in starting capital and $10,000 left per BRRRR, you can acquire 10 properties before needing fresh capital — each producing cash flow and appreciation.

Frequently Asked Questions

• What does BRRRR stand for?

  BRRRR stands for Buy (purchase below market value), Rehab (renovate to increase value and rentability), Rent (place a tenant for cash flow), Refinance (cash-out refi to recover invested capital), Repeat (use the returned capital to purchase the next property). It's a systematic approach to scaling a rental portfolio.

• What is the 75% rule in BRRRR?

  The 75% rule states your total all-in cost (purchase + rehab + closing/holding costs) should be at or below 75% of the after-repair value (ARV). This ensures that when you refinance at 75% LTV, you recover all or most of your invested capital. It's the core underwriting criterion for BRRRR deals.

• What is "cash left in deal"?

  Cash left in deal is the amount of your original investment that remains tied up in the property after refinancing. Ideally, this is zero or negative (meaning you pulled out more than you invested). Lower cash left in deal means higher return on invested capital and more funds available for the next BRRRR.

• What if I can't recover all my cash at refinance?

  Many BRRRR deals leave some cash in the deal — that's okay as long as the cash-on-cash return on the remaining capital is strong (10%+). Perfect zero-cash-left deals are the goal but not the requirement. A BRRRR with $15,000 left in a property earning $2,500/year (16.7% CoC) is still excellent.

• How long should the rehab take?

  Most BRRRR rehabs take 1–4 months for light renovations and 3–6 months for major gut rehabs. Longer rehabs increase holding costs (loan payments, insurance, utilities) and delay refinancing. Experienced BRRRR investors target 2–3 month rehab timelines with well-managed contractor teams.

• What type of loan works best for BRRRR?

  The initial purchase is often financed with hard money or private money (short-term, high-rate loans designed for flips/rehabs). After rehab and renting, you refinance into a conventional or DSCR loan with better long-term rates. Some investors use HELOCs or cash for the purchase and rehab phases.