BRRRR Calculator
Analyze your Buy-Rehab-Rent-Refinance-Repeat deal. See cash left in deal, forced equity, cash-on-cash return, and whether you can recycle your capital into the next BRRRR.
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Monthly Cash Flow
-$98
After refinance P&I of $998/mo on $150,000 loan
All-In Cost
$155,000
Cash Out at Refi
$0
Cash Left in Deal
$5,000
Cash-on-Cash Return
-23.5%
Advanced
Deal Analysis
All-in vs ARV, forced equity, 70% rule check, refinance timing by seasoning period
All-In Cost
$155,000
Purchase + rehab
ARV
$200,000
After repair value
Forced Equity Created
$45,000
ARV minus all-in cost
All-In / ARV Ratio
77.5%
High ratio
70% Rule Max Price
$105,000
ARV × 0.70 − rehab
70% Rule
FAIL
Overpaying by $15,000
Purchase Price: $120,000
Rehab Cost: $35,000
Forced Equity: $45,000
This deal fails the 70% rule. You're paying $15,000 more than the rule allows. Consider negotiating the price down or finding a higher-ARV property.
Pro
Portfolio & Risk Modeling
5-property portfolio build, hard money phase, ARV risk scenarios
deals
Projecting 5 BRRRR deals using the same deal parameters. Capital recycling assumed at 75% LTV refi.
| Deal # | ARV | Cash Back at Refi | Cash Left in Deal | Annual Cash Flow |
|---|---|---|---|---|
| 1 | $200,000 | $0 | $5,000 | -$1,175 |
| 2 | $200,000 | $0 | $5,000 | -$1,175 |
| 3 | $200,000 | $0 | $5,000 | -$1,175 |
| 4 | $200,000 | $0 | $5,000 | -$1,175 |
| 5 | $200,000 | $0 | $5,000 | -$1,175 |
Total Portfolio Value
$1,000,000
5 properties at ARV
Total Annual Cash Flow
-$5,877
Combined from all units
Total Equity
$250,000
ARV minus loan balances
Total Cash Left in Deals
$25,000
Unrecovered capital
How to Use This BRRRR Calculator
The BRRRR method — Buy, Rehab, Rent, Refinance, Repeat — is a real estate investing strategy popularized by BiggerPockets. The goal is to recycle the same capital into multiple deals by pulling it back out via a cash-out refinance after the property is stabilized.
- Purchase Price: What you pay to acquire the distressed property.
- Rehab Cost: Total renovation budget — always add a 10-20% contingency buffer.
- After Repair Value (ARV): What the property will be worth post-renovation. Use real comparable sales, not wish-list pricing. This is the single most important number.
- Monthly Rent: Market rent after renovation. Verify with local property managers.
- Monthly Expenses: Property taxes, insurance, property management (8-10%), maintenance reserves. Do not include mortgage payment.
- Refinance LTV: Most rental lenders (DSCR loans, conventional investment) will lend at 70-75% of ARV. Some portfolio lenders go to 80%.
- Refinance Rate: Expect rental property rates to be 0.5-1% higher than primary residence rates.
The BRRRR Formula Explained
All-In Cost = Purchase Price + Rehab Cost
Refinance Loan = ARV × LTV%
Cash Left in Deal = Max(All-In Cost − Refinance Loan, 0)
Cash Out = Max(Refinance Loan − All-In Cost, 0)
Monthly Cash Flow = Rent − Expenses − Refi Mortgage Payment
Cash-on-Cash Return = (Annual Cash Flow / Cash Left in Deal) × 100
Refinance Loan = ARV × LTV%
Cash Left in Deal = Max(All-In Cost − Refinance Loan, 0)
Cash Out = Max(Refinance Loan − All-In Cost, 0)
Monthly Cash Flow = Rent − Expenses − Refi Mortgage Payment
Cash-on-Cash Return = (Annual Cash Flow / Cash Left in Deal) × 100
The ideal BRRRR deal pulls out 100% of your invested capital at the refinance stage, leaving you with a cash-flowing rental property at zero (or negative) cost basis. This is the "infinite return" scenario investors chase.
The 70% Rule in BRRRR Context
The 70% rule filters deals quickly: pay no more than 70% of ARV minus rehab costs. This cushion covers selling costs, holding costs, and profit margin. If your purchase price exceeds this threshold, the deal may not support a full capital recycle at refi.
70% Rule Max Price = (ARV × 0.70) − Rehab Costs
Example: ARV = $200,000, Rehab = $35,000
Max Price = ($200,000 × 0.70) − $35,000 = $105,000
Example: ARV = $200,000, Rehab = $35,000
Max Price = ($200,000 × 0.70) − $35,000 = $105,000
Example: A Textbook BRRRR Deal
The Maple Street BRRRR
| Purchase Price | $120,000 |
| Rehab Cost | $35,000 |
| All-In Cost | $155,000 |
| After Repair Value (ARV) | $220,000 |
| Refinance Loan (75% LTV) | $165,000 |
| Cash Left in Deal | $0 (pulled out $10,000 extra) |
| Monthly Rent | $1,750 |
| Monthly Expenses | $650 |
| Refi Payment (7.0%, 30yr) | $1,098 |
| Monthly Cash Flow | $2 |
| Forced Equity Created | $65,000 |
| Capital Recycled | 100%+ (infinite return) |
This deal passes the 70% rule (max price = $119,000 — close), creates $65,000 in equity, and fully recycles the initial capital for the next BRRRR.
Frequently Asked Questions
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. The strategy involves buying a distressed property at below-market price, renovating it to force equity, renting it to a tenant, then doing a cash-out refinance to recover your initial capital and deploy it into the next deal. It was popularized by BiggerPockets co-founder Brandon Turner.
It depends on the lender. DSCR (Debt Service Coverage Ratio) lenders often allow refinancing after just 6 months of ownership using the appraised ARV. Conventional investment loans typically require 12 months of seasoning. Some portfolio lenders have no seasoning requirement but will use the purchase price or a lower LTV until you've held the property longer.
Cash-on-cash return (CoC) measures annual pre-tax cash flow divided by total cash invested. In BRRRR, the denominator is the cash left in the deal after the refinance — not the original all-in cost. This is why BRRRR CoC returns appear extremely high or "infinite" when you've recycled 100% of your capital. Target a minimum of 8-10% CoC on the cash remaining in the deal.
The main risks are: (1) ARV overestimation — if the property appraises below your target, the refinance won't pull out all your capital. (2) Rehab cost overruns — construction always goes over budget and over schedule. (3) Rental market softness — if rents fall after your renovation, cash flow shrinks. (4) Rate risk — refinancing in a high-rate environment can turn positive cash flow negative. Always run your numbers at ARV -10% and -20% to stress-test the deal.
DSCR loans are the most popular for BRRRR because they qualify based on the property's rental income rather than your personal income — no W-2 required. They typically offer 70-75% LTV on investment properties. Conventional investment property loans (Fannie Mae/Freddie Mac) allow up to 75-80% LTV but require income qualification and limit you to 10 financed properties. Portfolio lenders offer more flexibility but often higher rates.