BRRRR Method Calculator
Calculate if a property is a good candidate for the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat).
Will This Deal Give Your Capital Back?
The BRRRR strategy - Buy, Rehab, Rent, Refinance, Repeat - lives or dies on one question: after the renovation and the cash-out refinance, how much of your original capital comes back to you? Get it right and you can recycle the same down payment into property after property. Get it wrong and your cash is trapped in a half-finished project with a construction loan clock ticking. This calculator models the full cycle before you make an offer, so the deal has to work on paper first.
Enter the purchase price, rehab budget, expected after-repair value (ARV), down payment, projected rent and expenses, and the loan-to-value ratio your lender allows on the refinance. The tool then reports equity created, the maximum refinance amount, cash recovered, and post-refinance cash flow - plus a three-point verdict on whether the property is a genuine BRRRR candidate.
BRRRR Method Overview
The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) allows you to recycle your capital by refinancing after adding value through renovations. This calculator helps you determine if a property is a good BRRRR candidate.
Property & Investment Details
Total renovation and repair costs
Estimated property value after renovations
Include mortgage, insurance, taxes, maintenance, etc.
Loan-to-value ratio for refinance (typically 70-75%)
BRRRR Analysis
Investment Summary
Refinance Analysis
Cash Flow
BRRRR Success Indicators
Understanding the BRRRR Method
Step 1: Buy
Purchase an undervalued property, typically below market value or in need of repairs.
Step 2: Rehab
Renovate the property to increase its value. Focus on improvements that add the most value.
Step 3: Rent
Find a tenant and start generating rental income. Positive cash flow is essential.
Step 4: Refinance
Refinance the property based on its new, higher value to pull out your initial investment.
Step 5: Repeat
Use the recovered capital to purchase your next property and repeat the process to build your portfolio quickly.
The Three Numbers That Decide a BRRRR Deal
First, equity created: ARV minus your total investment. Aim for 20% or more, because the refinance lender will only lend against a fraction of the new value. Second, cash recovered: the new loan pays off your original financing, and whatever remains flows back to you. Recovery at or near 100% of the cash you put in is the hallmark of a textbook BRRRR. Third, post-refinance cash flow: the property must still pay for itself after taking on the larger loan. A deal that returns all your cash but loses $200 a month has simply converted equity into a liability.
Example: A $120,000 Fixer
Say you buy a dated three-bedroom for $120,000 with $24,000 down and put $30,000 into the rehab - $54,000 of your cash in total. Comparable renovated homes support a $200,000 ARV. At 75% LTV, the refinance loan is $150,000. Paying off the remaining $96,000 purchase loan leaves $54,000 back in your pocket: a 100% cash recovery. You have also created $50,000 of equity (ARV minus the $150,000 total investment, or 33%). If the renovated home rents for $1,500 against $1,050 in monthly expenses on the new loan, it clears $450 a month - all three success indicators turn green.
Shift one assumption and watch the model react: if the appraisal comes in at $180,000 instead of $200,000, the refinance drops to $135,000 and only $39,000 of your $54,000 returns. That is why experienced BRRRR investors underwrite the ARV conservatively and verify it against sold comps, not list prices.
Frequently Asked Questions
What does 100% cash recovery mean in a BRRRR deal?
It means the cash-out refinance returns every dollar you put into the deal - down payment plus rehab budget - leaving you with a cash-flowing rental and effectively none of your own money still tied up in it. At 100% or better recovery, your cash-on-cash return is technically infinite, and the recovered capital funds the next purchase. Most successful BRRRR deals recover 75-100%; a partial recovery can still be a good outcome if the remaining cash earns a strong return.
What loan-to-value ratio do lenders allow on a cash-out refinance?
Most lenders cap cash-out refinances on investment properties at 70-75% of the appraised value, which is why the calculator defaults to 75%. Some portfolio and DSCR lenders go to 80% for strong borrowers, while others hold at 70% for multifamily. The LTV assumption drives the whole model, so confirm your lender terms before trusting the cash recovered figure.
Why does the calculator flag 20% equity creation as a target?
If your total investment (purchase plus rehab) is not at least roughly 20% below the after-repair value, the refinance math rarely works: at 75% LTV, the new loan will not be large enough to return your capital. Forcing 20%+ equity means buying below market, adding real value through the rehab, or both. This is the BRRRR version of buying with a margin of safety.
How long do I have to wait before refinancing?
Many lenders impose a seasoning period - commonly 6 months, sometimes 12 - between purchase and a cash-out refinance based on the new appraised value. During that window you are carrying the property on your original financing, so budget holding costs into your rehab number and confirm seasoning rules with your lender before you close.