BRRRR Calculator
BRRRR Calculator
Buy & Rehab
Rent & Operating
Refinance
Based on your results — what to do next:
Stress-test the long-term hold
Cash flow of $141/mo is the starting point. Model rent growth, appreciation, and a sale in year 10.
Will a DSCR lender take this deal?
Your refinance payment of $1,247/mo against $1,388/mo of NOI gives a 1.11x coverage ratio.
What cap rate are you buying at?
Annual NOI of $16,656 on an ARV of $250,000 is a 6.7% cap rate.
The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) means buying a distressed rental, renovating it, renting it out, and refinancing at the higher after-repair value to pull your cash back out. This calculator shows how much cash stays trapped in the deal, your monthly cash flow after the new mortgage, cash-on-cash return, and whether the offer passes the 70% rule.
How a BRRRR Deal Is Calculated
① All-in cost
All-in = Purchase + Rehab + Closing + (Months Held × Monthly Holding Cost)
Everything you spend before the refinance.
② Cash-out refinance
Cash Out = ARV × LTV − Refinance Costs; Cash Left = All-in − Cash Out
If Cash Left is zero or negative, you recovered your full investment.
③ Cash flow and return
Cash Flow = Rent − Vacancy − Mgmt − Repairs − Tax & Insurance − Mortgage Payment; CoC = Annual Cash Flow ÷ Cash Left
Cash-on-cash is undefined (effectively infinite) when no cash remains in the deal.
④ 70% rule
Max Offer = ARV × 70% − Rehab
A quick screen investors use to leave room for profit and costs.
| Variable | Meaning | Typical Value |
|---|---|---|
| ARV | After-repair value | Use recent sold comps, not asking prices |
| LTV | Refinance loan-to-value | 70–75% is typical for investment cash-out refinances |
| Holding cost | Taxes, insurance, utilities and interest while renovating | Often $800–$2,000 per month |
| Vacancy / Mgmt / Repairs | Operating reserves as % of rent | 5–10% each is common |
| DSCR | Net operating income ÷ mortgage payment | Many DSCR lenders want 1.2x or more |
Worked Example — $150K purchase, $40K rehab, $250K ARV, $2,200 rent
- All-in = $150,000 + $40,000 + $4,500 closing + 6 × $1,200 holding = $201,700
- Refinance at 75% of ARV = $187,500; less 2% costs = $183,750 cash out
- Cash left in the deal = $201,700 − $183,750 = $17,950
- Payment at 7% over 30 years = $1,247; NOI after 5% vacancy, 8% management, 8% repairs and $350 tax and insurance = $1,388
- Cash flow ≈ $141/month ($1,687/year) → 9.4% cash-on-cash; DSCR 1.11x. The 70% rule max offer is $135,000, so this deal is $15,000 above the screen.
💡 Pro-Tip
The refinance appraisal is the whole deal.Most failed BRRRRs come from an ARV that appraises low or a lender seasoning period (often 6–12 months) that stretches holding costs. Run the deal at an ARV 5–10% below your estimate, and confirm the lender's seasoning and cash-out rules before you buy. If the numbers only work at your best case, pass.
BRRRR Calculator FAQ
What does BRRRR stand for?
Buy, Rehab, Rent, Refinance, Repeat. You buy a distressed property, renovate it, place a tenant, refinance based on the new higher value, and reuse the recovered cash on the next deal.
What is the 70% rule in BRRRR?
The 70% rule says your maximum offer should be 70% of the after-repair value minus rehab costs. On a $250,000 ARV with $40,000 of rehab, that is $135,000. It is a screening heuristic, not a guarantee of profit.
How much cash can you pull out in a cash-out refinance?
Investment-property lenders typically allow 70–75% of the appraised value. Subtract refinance closing costs and your total all-in cost to see how much cash remains in the deal, or how much extra you pull out.
Is a BRRRR with money left in the deal still worth it?
It can be. Compare the cash-on-cash return on the cash left in the deal with other uses of the money, and look at the equity you built. Use the Rental Property Calculator to model appreciation and a future sale.